#Fed Holds Rates Decision#   The Fed's interest rate decision signals a slowdown in the crypto market.

Investors lowered their expectations for a September interest rate cut after Federal Reserve Chair Jerome Powell failed to make a clear statement about the rate cut at a press conference on Wednesday.

One crypto analyst suggested this could lead to a slower-paced crypto bull market.

The United States central bank has decided to hold interest rates steady at 4.25% to 4.5% due to uncertainty about the economic outlook. The bank stated that this uncertainty "remains high."

No decision yet on September.

Powell said that rising tariffs are beginning to affect consumer prices on some goods. He did not rule out holding interest rates steady at the next Federal Open Market Committee (FOMC) meeting in September, adding that this would depend on economic data released in the next two months.

"We haven't made any decisions about September; we don't make them in advance," he said.

"If the unemployment rate remains stable and tariffs increase inflation, it would be difficult to justify a rate cut in the next few months," Comerica Bank chief economist Bill Adams told Reuters.

Powell opposed calls from US President Donald Trump to cut interest rates. He maintained his cautious approach as concerns grew about a continuation of the trade war, which could hamper progress toward the Federal Reserve's 2% inflation target.

US inflation is currently at 2.7% and has been rising for the past four months.

Rate Cut Probability Dropped

Powell's comments lowered the probability of a September rate cut to 40% after the meeting, down from 63% before the FOMC statement.

"If the Fed maintains its cautious stance, the pace of the bull market may slow, but if liquidity flows remain strong, the groundwork for an eventual recovery could be maintained," said Nick Ruck.

Henrik Andersson said, "The market had already priced in the absence of a rate cut this week, so it wasn't a surprise."

However, the market continues to expect one to two rate cuts by the end of the year.

"We don't think this will have a significant impact on the crypto market. It's been clear for some time that the uncertainty surrounding tariffs will delay US rate cuts."

He added that it was interesting that two commissioners dissented. This was the first time in 30 years that it had happened. Board member Christopher Waller and Vice Chair of Supervision Michelle Bowman supported the Fed's quarter-point cut.

Crypto markets fell slightly following the announcement but rebounded in Asian trading on Thursday morning.

The total market capitalization was approximately $3.94 trillion and has remained within a sideways range for the past two weeks.

US interest rate cuts generally support crypto markets because lower interest rates make traditional savings accounts less attractive and drive investors toward higher-risk, higher-yield assets like crypto.