The Federal Open Market Committee (FOMC) convened on January 29, 2025, to discuss U.S. monetary policy. The committee decided to maintain the federal funds rate target range at 4.25% to 4.50%, citing solid economic expansion and a stable unemployment rate. While inflation remains somewhat elevated, the committee aims for a 2% long-term inflation rate and considers the risks to its employment and inflation goals to be balanced. The committee also plans to continue reducing its holdings of treasury securities and agency debt and mortgage-backed securities.

Leading up to the FOMC meeting, the cryptocurrency market exhibited caution. Bitcoin, for instance, was trading between $100,000 and $102,000, reflecting investor uncertainty ahead of the Fed's decision. Analysts noted that a hawkish stance from the Fed could lead to temporary volatility in Bitcoin's price.

Following the FOMC's decision to keep interest rates steady, the cryptocurrency market experienced a slight decline. Bitcoin's price fell below the $102,000 mark, and altcoins also saw declines of up to 6%. This reaction suggests that the market was anticipating a more dovish stance from the Fed, and the decision to maintain rates may have led to a modest pullback in crypto prices. #FOMC_Decision