According to CME Group’s FedWatch tool, there is a 95.7% chance that the Federal Reserve will keep interest rates unchanged this month. The development follows rising tensions between the US-Israel and Iran. Let’s discuss what no interest rate change could mean for the crypto market.
Will The Crypto Market Suffer Due To No Interest Rate Cuts?
A dip in interest rates usually lead to a more risky investments from market participants as borrowing becomes easier. However, this trend saw a shift over the last few months. The cryptocurrency market saw its most significant single-day liquidation event in October 2025, despite having an interest rate cut. Moreover, the Federal Reserve announced another rate cut in December after employment figures went down. However, the December rate cut was not enough to boost investor sentiment in order to increase cryptocurrency investments.
Also Read: Iran US War: What To Expect From Stock Market This Week?
The low chances of an interest rate cut may not impact the cryptocurrency market right now. The recent tension escalation in the Middle-East led to a market-wide dip, with Bitcoin (BTC) falling to the $63,000 price level. The asset has since recovered the $66,000 mark.
When Will Rates Decrease Again?
President Trump has been speaking out against Federal Reserve Chair Jerome Powell for not reducing interest rates. Trump has named Kevin Warsh as Powell successor as the Federal Reserve Chair. Many anticipate Warsh to do Trump’s bidding and reduce interest rates further.
President Trump’s family has also been very active in the cryptocurrency space. The First Family has reportedly made more than $1 billion with their cryptocurrency dealings. While the market has seen substantial volatility over the last few months, the Trump family has actively expanded their crypto-related businesses.
While an interest rate cut may not be in the books right now, it is unclear how it may affect the crypto market.