Santiment assessed the crypto market’s reaction to the Fed holding rates
Analysts from the on-chain platform Santiment stated that after the U.S. Federal Reserve (Fed) decided to keep the interest rate unchanged at 3.5–3.75% annually, expectations of growth in the crypto market have increased.
According to Santiment, social media shows a rise in “bullish” sentiment: market participants associate the pause in rate changes with the likelihood of the start of a rally.
Analysts noted that the stability of monetary policy is already perceived as a positive factor. Investors are pricing in a scenario in which the regulator’s next step will be rate cuts, which traditionally support interest in risk assets, including cryptocurrencies.
Historically, Fed decisions have had a noticeable impact on the dynamics of digital assets. Periods of monetary easing are usually accompanied by an inflow of liquidity and rising prices. Santiment noted that some traders consider a possible rate cut in 2025 as a potential trigger for a new upward trend in Bitcoin.
At the same time, a pause in the Fed’s policy may have a mixed effect. It does not create an immediate impulse for the market but strengthens expectations of a transition to a more accommodative monetary policy.
Platform representatives emphasized that the key factor for the crypto market in the coming months will remain the Fed’s rhetoric. Signals of possible policy easing could accelerate capital inflows into crypto assets and increase speculative demand.
In the long term, market dynamics will depend on a combination of macroeconomic conditions and internal factors of the crypto industry. Among the growth drivers, analysts highlighted institutional demand, infrastructure development, and the integration of cryptocurrencies into traditional financial services.
Earlier, Arca’s Chief Investment Officer Jeff Dorman stated that the dominance of Bitcoin, Ethereum, Solana, and XRP restrains the development of the crypto market.
See also: "Tim Scott: the main US crypto bill may move forward this week"
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