Crypto Traders Eye ‘Bullish Relief Rally’ After Fed Holds Rates Steady
The U.S. Federal Reserve’s interest-rate path affects dollar funding costs and risk-asset valuations, prompting cryptocurrencies to react quickly to FOMC decisions. After the Fed held rates steady in March 2026, Santiment observed that traders viewed the unchanged policy as a pause in bearish pressure and anticipated a “bullish relief rally,” though market confidence remained fragile.
On March 18, 2026, the Fed kept the federal funds rate at 3.50%–3.75%, while Santiment’s social-discussion score rose from about 9 to 71 within hours. Bitcoin was quoted at $70,790 the following day, down 4.35% over 24 hours. On June 17, the Fed again left rates unchanged at the first policy meeting chaired by Kevin Warsh, and Bitcoin fell from about $66,000 to $64,800.
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The history behind this eventFed Minutes Signal Possible Further Rate Cuts by End-2026, a Potential Crypto Tailwind
The Federal Reserve influences dollar funding costs and global liquidity through changes to its policy rate. If inflation remains under control and the Fed begins cutting rates, borrowing costs could fall and capital may shift toward more volatile risk assets such as crypto. Markets are therefore closely watching the rate path.
Minutes from the Fed’s March 2026 meeting showed officials remained divided over whether to cut rates further before year-end, though much of the discussion left room for action once inflation cools. The Iran war has added uncertainty to the economic and inflation outlook. Market analysts said rate cuts and additional liquidity this year could provide a tailwind for crypto markets.
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