Federal Reserve Maintains Interest Rate Amid Speculation

Federal Reserve Chair Jerome Powell will announce the interest rate decision on January 28 at 3 a.m., after three consecutive cuts, with expectations to keep it unchanged.

Markets widely anticipate stability in rates, affecting sentiment among investors, particularly in risk-sensitive assets like BTC and ETH, as Powell’s remarks are closely analyzed for future guidance.

Federal Reserve Rate Hold: Crypto Market Assessments

Jerome Powell will lead the announcement regarding the Federal Reserve’s interest rate, expected to remain at 3.75%. After three consecutive rate cuts, this is significant as the last change occurred in December 2025. Michael Gapen, Morgan Stanley’s Chief Economist, anticipates a dovish tone from Powell suggesting stability.

The market anticipates no immediate rate adjustment, with CME FedWatch indicating a 97.2% probability of rates staying constant. Investors are looking for indications of how long rates might remain unchanged to adjust strategies accordingly concerning risk assets like cryptocurrencies.

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Market reactions are already surfacing in response to Powell’s anticipated announcements. While risk assets, particularly BTC and ETH, are sensitive to such monetary policies, experts like Wall Street Journal’s Nick Timiraos have noted the Federal Reserve’s restraint, highlighting potential investor concerns about prolonged rate stagnation.

Bitcoin Price Movements and Historical Interest Rate Context

Did you know? The Federal Reserve’s decision to pause rate moves echoes similar actions in the late 1990s, where stability post-cuts led to substantial market adjustments, particularly in tech sectors.

Bitcoin’s current market price is $89,035.05, with a market cap of 1.78 trillion and dominance at 58.93%. Trading volume in 24 hours has reached 38.29 billion, with a minor price increase of 0.87%. Over 90 days, BTC saw a notable decline of 19.88%. Pricing and volume data sourced from CoinMarketCap.

According to Coincu’s research team, stable interest rates may ensure ongoing volatility for risk assets. Such monetary consistency may affect the growth trajectories of cryptocurrencies, leading to potential shifts in investor confidence based on liquidity and inflation outlooks.