Fed Holds Interest Rates Steady; Signals Two Cuts in 2025 as Bitcoin Recovers Near $105,000 Amid Market Caution

The US Federal Reserve kept interest rates unchanged in June, maintaining the federal funds rate between 4.25% and 4.50%, in line with market expectations. The Fed’s updated dot plot shows officials anticipate two 25-basis-point rate cuts in 2025, with one additional cut each in 2026 and 2027, reflecting a slight dovish shift. Projections include a downward revision of 2025 US GDP growth to 1.4% and an upward revision in core PCE inflation to 3.1%. Unemployment is forecast to rise modestly to 4.5%. Fed Chair Jerome Powell described the US economy as robust but highlighted above-target inflation and the uncertainty of tariff impacts. Analysts note forecasting tariff effects remains difficult. Equity markets showed mild reactions: the Dow slipped, while the Nasdaq inched up. Bitcoin briefly fell below $104,000 following the announcement but rebounded to near $105,000, posting a modest 0.5% gain in 24 hours. For crypto traders, the Fed’s stance points to ongoing caution, with prolonged high rates, inflation uncertainty, and potential trade tensions posing risks for both equities and crypto. Market volatility may persist, so traders should closely monitor Fed signals and macro developments.