The US Federal Reserve (US FED) has not made any changes in Pastime Charges after a two -day meeting on May 6 and 7, which has also directly shown the effect on the Crypto market. Bitcoin has increased slightly after the decision to keep the interest rates stable. Significantly, US President Donald Trump is constantly demanding to reduce the interest rates, but despite this US FED chairman Jerome Powell has not made any changes in interest rates. Fed Chairman said in the press conference that the current Financial Coverage keeps us in time to respond to possible economic changes.
What is the effect of interest rates on the crypto market?
Significantly, it is determined by the pastime charges set by the central bank of any country that taking loans in the market will be expensive or cheaper. In such a situation, if the Federal Keep in the US reduces interest rates, then people take more debt, the market flow increases and investment would also increase. At the same time, if the interest rates decrease, the risky Crypto Marketplace also increases.
Interest rate stable, light bounce shown in bitcoin
Currently, US Federal Keep has decided to keep its interest rates within 4.25 per cent to 4.50 per cent in May 2025. There was already a possibility that Jerome Powell would not make any changes in interest rates and its effect was also positive on the crypto market. During this time Bitcoin saw a rise of 2.52% and its fresh price reached $ 99,034.48. Apart from this, Ethereum also saw 3.60%, XRP and other cryptocurrency also saw a slight rise. Let me tell you that Once Donald Trump himself was opposed to Crypto, but is now supportedRead about this in detail here.
Controversy between Trump and Powell over interest rates
There has been a long dispute over interest rates between US President Donald Trump and Fed Chairman Jerome Powell. Donald Trump wants to reduce the US Fed interest rates so that the debt increases the flow of capital when the debt is cheaper and the economic growth increases, but Powell repeatedly said that Fed is an independent institution and it will not work under any political pressure. Powell changed the interest rates based on the results of the economic report, angered by Donald Trump. Donald Trump continuously targets them for interest rates.
Why does UD Fed decide
In fact, the decision taken on the interest rates of UD FED affects markets around the world. This is the reason why it also has a profound impact on investors. Now there is no sudden decline in the market due to no change in interest rates. At the same time, when the interest rates are high, the risk in the crypto market increases, the risk of which is currently stuck.
Conclusion
Crypto Marketplace is currently relieved by the decision to keep the interest rate of Federal Keep unchanged. Bitcoin Other Virtual Property, including, shows stability, which suggests that investor is alert at this time and there is no nervousness. In such a situation, in the future, US FED stance and global trade policies will depend on whether the crypto market will accelerate or recession.
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