Latest FOMC meeting’s decision proves bullish for crypto, BTC up 3%, XRP up 7%, ETH up 3.5%

The Federal Open Market Committee’s (FOMC) decision to keep interest rates unchanged at its March 19 meeting has had a positive effect on crypto markets. Bitcoin (BTC) surged by 3% in the last 24 hours, while Ethereum (ETH) and XRP recorded gains of 3.9% and 7% in the same period, respectively.

According to CoinGecko, Bitcoin peaked at $87,427 late Wednesday, climbing 4% in response to the Federal Reserve’s rate cut pause. Altcoins Ethereum, XRP, Solana, BNB, and Cardano all had positive price movements of at least 1.5% in the early trading hours of Thursday. 

Among the biggest winners from Fed Day is the Binance memecoin, named after co-founder Changpeng Zhao’s dog broccoli. It went up by 80% intraday and is now changing hands at $0.05887.

Crypto markets react to Fed policy

According to market research platform Santiment Feed’s insight published on Thursday, both crypto and equities, which had been experiencing weeks of decline, rebounded slightly after the announcement.

🏦 The latest FOMC meeting's decision to leave interest rates alone has been a positive for crypto markets thus far. Our latest insight looks at the past year of the Fed and Jerome Powell's interest rate tinkering, and how it has impacted crypto. 👇https://t.co/LSDqzhNYVZ

— Santiment (@santimentfeed) March 20, 2025

Over the past 12 months, the Fed meetings have been a basis for crypto market movements. In March 2024, the Fed had kept rates at 5.25%–5.50%, leading Bitcoin to a then-record high of over $72,000. Yet, the rally was short-lived, with prices tumbling in April as traders started taking profits en masse.

By September, the Fed implemented a 25-basis-point rate cut to 5.00%–5.25%, which triggered a 10% rally in Bitcoin over the following 10 days. Q1 2024 marked the beginning of a bull cycle that lasted until January 2025.

The November 2024 FOMC meeting coincided with Donald Trump’s election victory. The Fed cut rates again by 25 basis points, setting the range at 4.75%–5.00%. The move sent Bitcoin to a new all-time high of $99,000 and lifted the whole crypto market into a more defined bullish run.

Still, since late January, markets took a nosedive that saw Bitcoin drop to levels below $80,000, in the week leading up to the FOMC’s two-day meeting. Yesterday, crypto enthusiasts had a reason to smile back again, with the top 10 ranking assets by market cap, bar stablecoins, all flashing green.  

At one point on Wednesday, XRP rose by 13%, buoyed by comments from Ripple CEO Brad Garlinghouse, who announced that the US Securities and Exchange Commission (SEC) was preparing to drop its lawsuit against the company. Ripple’s token is trading at $2.45, although it is still 4% down from its 30-day highs.

Fed maintains rates, signals economic uncertainty

The Federal Reserve left its benchmark interest rate steady at 4.25%–4.5% for a second consecutive meeting. This decision extends a pause that began in January, following a series of rate cuts in late 2024 that had reduced borrowing costs by a full percentage point.

Despite signs of higher inflation and slower growth, Fed officials maintained their forecast for two rate cuts later in the year. The central bank projected inflation at 2.7% for 2025, up from its previous 2.5% estimate, while noting that economic uncertainty had increased.

Fed Chair Jerome Powell dismissed concerns about recession risks, attributing recent inflationary pressures to transitory factors such as the Trump administration’s tariffs. 

In his post-meeting statement, the central banker predicted a continued economic expansion, stable unemployment data, and inflation that remains “somewhat elevated.”

“The Committee is strongly committed to supporting maximum employment and returning inflation to its 2 percent objective,” the Federal Reserve denoted.

Officials still expect cuts in the coming months. Most policymakers anticipate rates falling to a range of 3.75%–4.00% by the end of 2025, consistent with previous projections. 

Still, some Fed members see fewer or smaller rate cuts, with eight officials predicting just one or no additional reductions. By the end of 2026, rates are expected to drop further to 3.25%–3.50%, with a long-term target of around 3.00% by 2027. 

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