Fed Holds Rates, Shifting Crypto Sentiment to Neutral as Major Coins Climb

The Crypto Fear and Greed Index jumped 17 points to 49 following the Federal Reserve’s decision to hold interest rates steady at 4.25%–4.50%. This move, seen as supportive amidst ongoing economic uncertainty, has helped shift investor sentiment from fear to a more balanced, neutral stance. In the wake of the announcement, the crypto market experienced broad gains with Bitcoin rising by 3% to $85,786, Ethereum increasing by 4% to $2,022, and Solana surging by 6% to $133. Additionally, there has been renewed interest in crypto-based investment products, as evidenced by record weekly inflows into Bitcoin ETFs and mounting expectations for the upcoming launch of Solana ETFs. This influx of capital, along with significant liquidations in the futures market, underscores the market’s positive reaction to a pause in rate cuts and reinforces the trend of increasing institutional investment into digital assets.