The Fed Holds Rates for the Third Time: Bitcoin and Ethereum Decline

Jerome Powell is nearing the exit, yet he stands firm, almost rigid, against persistent political pressure. Donald Trump’s repeated attacks bounce off him like arrows against hardened armor. At the helm of the Fed, the man maintains a cold, almost clinical course, never wavering. Meanwhile, the crypto market watches, absorbs, and questions, facing an institution that never looks back.

The Fed Locks Liquidity and Chills the Crypto Market

The Federal Reserve kept rates between 3.5% and 3.75% for the third time this year. This FOMC decision, expected yet meaningful, confirms a cautious stance amid persistent inflation pressures. Indeed, the institution operates in an unstable environment shaped by rising global energy prices.

The internal vote reveals an unusual fracture within the Fed, almost unsettling to seasoned observers. Eleven members backed the status quo, while Stephen Miran pushed for an immediate rate cut. Three other officials refused to support any easing bias, highlighting a rare division unseen in decades.

This monetary freeze acts like a tightening vice on the crypto market, still heavily dependent on global liquidity. Bitcoin slipped toward $75,100, while Ethereum dropped below $2,300 shortly after the announcement. Crypto investors now grasp a simple truth: the Fed will not loosen its grip.

Bitcoin and Ethereum Trapped in an Unforgiving Macro Machine

The crypto market does not fall alone; it is dragged down by a broader, harsher environment. The Middle East conflict disrupts the Strait of Hormuz, a key route for nearly 20% of global oil flows. This energy shock reignites inflation that the Fed had hoped to contain.

Gasoline prices have climbed to $4.22 per gallon, up sharply from $2.99 before the Iranian conflict. This surge prevents any quick rate cuts, maintaining constant pressure on risk assets. Crypto traders now navigate a tense, almost hostile landscape where macro forces dominate.

Developments in the Middle East are contributing to a high level of uncertainty about the economic outlook. Inflation is elevated, in part reflecting the recent increase in global energy prices.

Federal Reserve / FOMC statement, source: Decrypt

Thus, Bitcoin and Ethereum are not weakening alone; they are absorbing pressure from a dominant macro backdrop.

Final Act Under Pressure: Powell Leaves a Divided Yet Unyielding Fed

Jerome Powell approaches the exit but leaves behind a Federal Reserve under constant strain. His term ends on May 15 in a politically charged and unstable environment. The institution has been attacked and criticized, yet it has not yielded on its core principles.

Powell emphasizes one key point: monetary independence remains a non-negotiable red line. He rejects any political interference in Fed decisions despite repeated pressure. This rigid stance defines his legacy, austere yet consistent in a conflict-heavy environment.

It is so important for economy, for the people that we serve, that they can depend, over time, on a central bank that operates that way free of political influence. It’s part of the absolute foundation of this amazing economy that we have.

Jerome Powell, Federal Reserve Chair, source: Fox Business

The Numbers That Truly Capture the Tension

• The Fed holds rates at 3.5%–3.75% in April 2026, without giving an inch.
• Bitcoin stands at $75,617, while Ethereum reaches $2,238 at the time of writing.
• U.S. inflation now fluctuates between 3.3% and 3.6%, driven largely by energy prices.
• Average gasoline prices hit $4.22 per gallon, reflecting ongoing geopolitical tensions.
• The Fed records a third consecutive rate pause this year, signaling a deliberate standstill.

The Fed exits this phase on a tightrope, without clear victory, but without surrender.

Even for Kevin Warsh, the path ahead already looks unstable and politically charged. Before even taking office, tensions are building around his nomination. The future chair will have to operate in a fragile climate, where every decision will be scrutinized, challenged, and potentially weaponized.