US Fed Holds Interest Rate Steady, Gives Clarity to Crypto Market

• The US Fed has kept rates unchanged in the range of 3.5% and 3.75%.
• Members of the crypto market have responded to this update.
• Trump to announce the replacement of Powell.

The US Fed, or the US Federal Reserve, has decided to keep the interest rate as it is. The crypto market was earlier speculating what the decision could be, even though the majority of the sphere was confident about no rate cut. The decision comes after the US President Donald Trump and Jerome Powell got into a conflict, reportedly threatening the independence of the central agency.

No Rate Cut by the US Fed

The US Federal Reserve has concluded its January meeting, confirming that there will be no rate cut this time. The rate will remain in the range of 3.5% and 3.75% while officials continue to monitor the nation’s economic activities. The Fed has said that the economic activity of the US has been growing at a solid pace, according to a BBC report.

Jerome Powell, Chair of the central agency, has said that the outlook for economic activity has improved, but there is still some tension between inflation and employment. Only two Fed officials had voted in favor of a rate cut – Stephen Miran and Christopher Waller. The board eventually focused on the recent economic data to keep the rate unchanged.

What’s at Stake for the Crypto Market?

A rate cut would have fundamentally allowed investors to allocate more funds to a risky alternative, the crypto market in this case. An unchanged rate for the first time since July 2025 has offered one clarity – interest rate will remain in the same range of 3.50% and 3.75%.

Bitget, an exchange platform, shared the news and received several responses. Some of them said that there would not be an altseason, to which Bitget replied with HODL. Others hinted that they would wait to see how the situation unfolds, to which the platform asked to carry on.

Meanwhile, the global crypto market has lost almost 1.12% of its market cap, which is now $2.99 trillion. Top tokens like BTC and ETH have lost 1.12% and 1.60% of their respective values over the last 24 hours.

What’s Next?

There is no sign of the next rate cut at the moment; however, Trump is likely to announce a replacement for Powell. Jerome is scheduled to step down in May 2026, which would pave the way for the next Chair to take over. Trump and Powell were earlier in a conflict, which brought out the possibility that Powell was being targeted for not cutting rates soon enough. He defended himself by emphasizing the importance of the Fed’s independence.

For the crypto market, this could be a time to be cautious, to do research, and conduct risk assessment before investments. The US Federal Reserve has decided to hold the rate steady, not strengthening the borrowing capacity of investors any further.

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