Bitcoin and Ethereum Drop 1% After Fed Holds Rates Steady

Fed keeps benchmark at 3.5%-3.75% for fifth straight time. Bitcoin falls to $63,890 and Ethereum to $1,900 amid hawkish dissent from three regional bank presidents.

Woofun AI reports that the Federal Reserve maintained its benchmark interest rate within the 3.5% to 3.75% range on Wednesday, aligning with market consensus. This decision marks the fifth consecutive meeting where the committee held rates steady following a 25 basis point cut in December 2025. Consequently, Bitcoin declined approximately 1% to trade at $63,890, while Ethereum similarly dropped by roughly 1% to settle just above $1,900.

The committee noted that while the U.S. economy is expanding solidly, inflation remains above the 2% target, partly driven by Middle East-related energy price increases. Three Federal Reserve Bank presidents—Beth Hammack, Neel Kashkari, and Lorie Logan—voted for an immediate 25 basis point hike instead. No economic forecast summary or dot plot was released, with the next FOMC decision and updated projections scheduled for September 16, 2026.