Fed holds rates steady as markets stay hawkish

The Federal Reserve held interest rates steady at its latest meeting, but markets are still adjusting to what that hold now means. Updated projections pointed to a path that looks firmer for longer than investors had expected, and that shift kept the repricing going for a second day.

CoinDesk reported that rate-cut hopes faded after the meeting, with US spot bitcoin and ether ETFs posting combined outflows of $111 million on Wednesday, $82 million from bitcoin funds and $29 million from ether. That suggests the institutional bid behind the recent recovery weakened as the macro outlook turned less supportive.

The repricing has also shown up beyond crypto. Investors had gone into the meeting expecting rates to stay at 3.50% to 3.75%, but the focus was on projections and tone for clues on inflation and the path ahead. What changed was not the policy rate on the day, but the expected path after it. For now, that shift in expectations is keeping pressure on risk assets and on crypto positioning in particular.