FOMC Meeting: The Fed Holds Interest Rates, What Impact Will This Have on Crypto?

The Fed kept its benchmark interest rate at a range3.75%–4.00% on October 28, 2026. 

For crypto investors, this decision provides momentary certainty, but does not yet address the future direction of policy.

The FOMC's impact on crypto also depends on the central bank's message, investor expectations, and market conditions.

Bitcoin was trading above US$81,000 again after the announcement.

However, a recovery was already visible ahead of the meeting, so the movement should not be attributed solely to the Fed's decision.

Key Takeaways

• The October 2026 FOMC meeting results showed interest rates held steady, with a vote of 10–2.

• High inflation makes the possibility of further tightening still worth watching.

• Bitcoin's initial response hasn't confirmed the trend, and investors need to pay close attention to economic data and leverage risks.

October 2026 FOMC Meeting Results and Reasons for Holding Interest Rates

The Federal Open Market Committee, or FOMC, the US monetary policy-making committee, approved the decision by a vote of 10–2.

Lisa Cook and Beth Hammack dissented, opting for a 0.25 percentage point or 25 basis point increase.

Official statements describe a robust economy, resilient domestic spending, and solid capital investment.

Job additions offset labor force growth, while the unemployment rate remained relatively stable.

However, inflation remains high and has not yet returned to the 2% target.

In a copy of a BBC report dated October 29 provided to editors, Fed Chairman Kevin Warsh explained that credit conditions were starting to tighten after the previous hike.

The central bank still needs additional data to assess the impact.

This means that this pause provides time for evaluation, not a promise that interest rates will remain unchanged at the next meeting.

Read Also:October 2026 FOMC Schedule: Announcement Time and Impact on Bitcoin

Bitcoin Price After FOMC: Recovering, but Not Yet Trending

Ahead of the announcement, Bitcoin had already moved back towards US$81,000 after briefly dropping below US$80,000.

A ForkLog report on October 28 attributed the market mood at the time to the anticipation of the Fed decision as well as inflation concerns due to the oil surge.

Following the announcement, Investing.com listed Bitcoin at US$81,336.10 on October 28 at 21:50 GMT, equivalent to October 29 at 04.50 WIB.

These figures are a snapshot of the report, not real-time prices at the time of reading this article.

The same report said some altcoins also rallied, but rising oil prices limited the positive sentiment.

This order is important: recovery takes place both before and after the decision.

Therefore, the post-announcement increase does not prove that the FOMC was the sole cause.

A few hours of reaction is also not enough to conclude weekly or monthly trend changes.

Read Also:Crypto Ahead of the FOMC: Will Crypto Market Volatility Increase?

How Does the Fed's Policy Affect the Crypto Market?

The impact of the Fed's interest rate on crypto plays out through borrowing costs, liquidity expectations, the value of the dollar, and risk appetite.

Higher interest rates can make funding expensive while increasing the attractiveness of interest-bearing instruments.

Conversely, expectations of easing could support appetite for riskier assets, although the outcome depends on economic conditions.

The following table summarizes the possible impacts, not definitive predictions.

AMBCrypto said the decision to maintain interest rates had been widely expected by the market.

In such conditions, the emphasis on inflation or the possibility of further increases can be more influential than the interest rate itself.

The FOMC's impact on Bitcoin also interacts with investment flows, derivatives positions, geopolitics, and global sentiment.

Ethereum and altcoins may follow changes in risk appetite, but factors specific to each asset still play a role.

Not all tokens have to move in the same direction or magnitude.

Read Also:Bitcoin Price This Week: 4 Key Events to Watch

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What Should Investors Watch Out For After the Announcement?

The relationship between US inflation and Bitcoin prices needs to be read through changes in policy expectations.

Pay attention to inflation, job growth, and unemployment releases, then compare the results with market forecasts.

Surprising data could change investors' views on future interest rates.

Also monitor the US dollar and government bond yields.

Both help show how markets interpret US monetary policy.

Next, observe whether Bitcoin's movement persists after the initial reaction and whether major crypto assets show a similar response.

For a Bitcoin trading strategy, risk assessment needs to include position size and ability to withstand price changes.

Crypto market volatility doesn't always stop after the announcement is over.

Read Also:Long vs Short Crypto Futures Strategy: When to Buy and Selln Sell?

Bittime Futures and Leveraged Trading Risks

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Users provide margin, which is the funds to guarantee a position, while leverage increases exposure compared to capital.

This mechanism increases the potential for losses as well as profits, insufficient margins can trigger liquidation or forced closure.

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FAQ

What will the Fed's interest rate be after the October 2026 FOMC?

The target range remains 3.75%–4.00%, based on the decision of October 28, 2026.

Why did two members vote for the increase?

Cook and Hammack voted for an additional 25 basis points. The brief official statement did not elaborate on their individual reasons.

Does this decision guarantee Bitcoin will rise?

No. Market expectations, investment flows, and economic developments all influence price responses.

Will interest rates remain unchanged at the next meeting?

Not yet confirmed. The Fed will consider additional economic information before making a decision.

Why is leverage important to pay attention to after the FOMC?

Leverage magnifies the impact of price changes on margin, so adverse movements can accelerate liquidation.