Fed Holds Rates; Bitcoin Steady as December Hike Looms
Fed Stands Pat, Bitcoin Holds Steady—But a December Rate Hike Is in Play
The Federal Reserve held its benchmark interest rate steady on Wednesday, voting 10-2 to keep the federal funds target range at 3.75% to 4.00%. The decision marked a pause after the central bank resumed rate hikes in September, while leaving the door open to additional tightening later this year.
Two policymakers dissented. Fed Governor Lisa Cook and Cleveland Fed President Beth Hammack voted for another quarter-point increase, according to the Fed’s statement.
Bitcoin reacted with little volatility immediately after the 2 p.m. ET announcement, edging up about 0.2% to roughly $80,950. Ahead of the decision, the CME Group’s FedWatch tool—based on interest-rate futures pricing—had placed the odds of no change at around 90%, indicating the pause was broadly expected.
Even with rates unchanged, attention is now shifting to the Fed’s next meeting on December 8–9, when the central bank is scheduled to release updated economic projections alongside its rate decision.
Market pricing has increasingly reflected the possibility of another move. In a separate roundup of “key elements” tied to the decision, CME data was cited as showing the probability of a 25-basis-point hike in December rising above 85%.
The rate backdrop matters for crypto because higher yields can raise the appeal of cash and government bonds relative to risk assets. At the same time, demand dynamics within crypto markets continue to develop. In the two days leading into the Fed decision, spot Bitcoin ETFs recorded $286 million in combined net inflows, with $176 million of that total on October 27.
With the Fed pausing for now but signaling internal disagreement, the message for markets—including crypto—was less about an immediate policy shift and more about a tightening cycle that may not be finished.
