Federal Reserve Maintains Benchmark Interest Rate at 4.25%-4.50%

The Federal Reserve has maintained its benchmark interest rate at 4.25%-4.50% for the fifth time, signaling continuity amidst ongoing market expectations, based on Jinshi reports.

This steady monetary policy influences cryptocurrency market dynamics, prompting increased USDT flows and potential volatility. Key assets like BTC and ETH may see shifts in investor behavior.

Fed’s Decision Aligns with Market Predictions

The Federal Reserve’s decision to maintain the benchmark interest rate at 4.25%-4.50% comes at a period of careful economic policy navigation. Under the leadership of Jerome Powell, the Fed has opted not to alter the rates, stating, “The committee decided to maintain the target range for the federal funds rate at 4.25%-4.50%.”

Market analysts and investors were largely expecting this rate hold, impacting the crypto market, particularly stablecoins and DeFi assets. In the hours following the announcement, substantial transfers of Tether and other stablecoins to exchanges were observed, signaling increased liquidity positions.

While official responses from crypto key opinion leaders are sparse, the market is watching closely for any follow-up movements in asset prices and trader sentiment. Notable crypto exchanges, like Coinbase, are making strategic listings amid the macroeconomic certainty, suggesting hedging against potential shifts.

Ethereum Among Cryptos Reacting to Rate Stability

Did you know? Periods of consistent rate holds often correspond with increased DeFi activity, particularly highlighted in past cycles when monetary policies stabilized market sentiment.

Ethereum (ETH) stands notably impacted with a current price of $3,762.04, and a market cap reaching $454.12 billion. The cryptocurrency has seen diverse fluctuations: a 90-day price rise of 103.93% and a modest 24-hour decline of 0.29%, showing resilience despite short-term headwinds. Data from CoinMarketCap shows its circulating supply at 120,710,561.81 ETH, reflecting robust ecosystem health as of July 30, 2025.

According to Coincu research, the Fed’s rate hold might sustain financial market stability, potentially delaying regulatory actions on crypto assets. Historically, stable policy periods have allowed DeFi protocols to gain momentum, fostering technological innovation without abrupt financial disruptions.