Bitcoin and Ethereum Dip as Federal Reserve Keeps Interest Rates Unchanged

The Federal Reserve maintained its benchmark interest rate unchanged, leading to a 4% drop in Bitcoin and over 1% in Ethereum following the announcement. Fed Chair Jerome Powell said it was "unlikely" the next move would be a rate hike, but inflation remains above the 2% target. Both coins had gained in the hour before and after the Fed decision was announced. Shifting rate expectations are impacting bitcoin prices as ETF inflows pitter out. Inflation has fallen from highs but remains above the Fed's 2% target, fueling caution on rate cuts. Higher rates are generally bad for risky assets like crypto by making cash relatively more attractive.