Fed pauses rate hikes, predictions of future cuts, crypto market reacts negatively.

From Yahoo Finance: 2025-06-18 17:12:00

The Federal Reserve paused rate hikes, leaving them at 4.25%-4.5%. Predictions include two 50 bps cuts in 2025 and smaller cuts in 2026 and 2027. The crypto market reacted negatively, with a $3.24 trillion to $3.23 trillion drop after the announcement.

Bitcoin fell from $104,350 to $104,256.70 post-Fed announcement, while Ethereum held steady at $2,494.74. XRP saw a minor dip from $2.15 to $2.14. Analysts suggest Fed could have cut rates if not for inflation risks from Trump’s tariff policies.

A trader bet $2.4 million on the Fed’s move via Polymarket, winning around $60,000. Despite skepticism, the bet paid off. Polymarket is a crypto-based prediction market allowing bets using cryptocurrency on various events. The trader walked away with a significant profit, showcasing the unpredictability of the market.

Read more: Fed pauses rates, trader walks away $2.4 million richer