Digital gold and other crypto assets fell after the Fed’s rate decision.
Digital gold and numerous other crypto assets depreciated on the evening of April 29 following the Federal Reserve’s decision to maintain the interest rate at its current level.
The Federal Open Market Committee (FOMC) voted eight to four in favor of keeping the rate within the 3.5–3.75% range.
The regulator pointed to persistent inflationary pressures due to rising global energy prices and warned that the situation in the Middle East creates a “high level of uncertainty” for forecasts.
Bitcoin fell from approximately $76,200 to around $75,000 in the first hour following the decision’s publication, before rebounding to $75,760.
Ethereum, Solana, and XRP continued their earlier declines from the same day.
Not the Main Factor
The rate hold was almost entirely priced in: the CME FedWatch tool had shown nearly a 100% probability of a pause the day before. Several analysts believe that the Fed’s decision is not currently the primary driver of digital gold’s price.
“The most important catalyst for Bitcoin right now is not the FOMC, but the CLARITY Act,” stated Theo’s Chief Investment Officer, Iggy Ioppe, in a conversation with The Block.
According to him, the bill makes Bitcoin’s infrastructure more bank-friendly. It formally establishes the first cryptocurrency’s status as a commodity under CFTC jurisdiction, eliminating the risk of excessive SEC intervention and allows banks to hold the asset without excessive capital requirements.
The bill is advancing through Congress, but contentious provisions—particularly those concerning stablecoins and ethical issues—are hindering its passage.
The analyst also highlighted the upcoming earnings reports from the “Magnificent Seven” companies—Alphabet, Amazon, Meta, and Microsoft—as a short-term factor for risk assets, including Bitcoin.
Back in April, Tudor Investment founder Paul Tudor Jones called the first cryptocurrency the best tool for inflation protection.
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