Crypto Slides as Fed Holds Rates in Rarely Split Decision, Dimming Hopes for Cuts

Bitcoin (BTC) slipped below US$75,000 (AU$108K) after the Federal Reserve held rates at 3.5% to 3.75% in an 8-4 vote, with the rare split cooling hopes for fast cuts as inflation and leadership uncertainty hang over markets.

The Fed’s statement kept the federal funds target range unchanged and said officials would assess incoming data, the evolving outlook and risks before making additional adjustments. 

Unsurprisingly, Bitcoin fell alongside most major crypto assets after the decision, with Ethereum, Solana and XRP also reaching two-week lows.

The headline decision was not a surprise, but the vote was. Axios reported the four dissents were the most at a Fed policy meeting since October 1992, a signal that future rate guidance may become harder to read as Jerome Powell approaches the end of his chair term.

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Split Fed Vote

Federal Reserve Governor Stephen Miran dissented because he wanted a 25-basis-point rate cut at the meeting. 

Cleveland Fed President Beth Hammack, Minneapolis Fed President Neel Kashkari and Dallas Fed President Lorie Logan dissented for the opposite reason, as they supported holding rates steady but objected to language that kept an easing bias in the statement.

For crypto, this means that lower rates are generally treated as supportive for risk assets, while persistent inflation and policy caution can keep liquidity expectations restrained. The statement said the Fed remained strongly committed to maximum employment and returning inflation to its 2% target.

Axios quoted Powell as saying officials did not need to change the disputed language at this meeting because conditions over the next 30 to 60 days could alter the outlook. He also pointed to uncertainty tied to the Iran war as one reason the committee needed more time.

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