Crypto industry recovers to $ 2.9 trillion amid Fed’s statements

For the second time since Donald Trump’s presidency, the US Federal Reserve has suspended its key policy rate hike, leaving it at 4.25%-4.50%. This decision immediately sparked a revival in the crypto market, with the industry’s capitalization recovering to $ 2.9 trillion. Investors are now closely watching the Fed’s next steps, as the regulator has updated its GDP growth forecast and hinted at a possible easing of monetary policy.

At the same time, the Fed will start slowing down the pace of its balance sheet reduction in April. According to MartyParty, a crypto market analyst, this coincided with his forecasts. The regulator will reduce monthly sales of government bonds from $ 25 billion to $ 5 billion, but will leave the limit for agency securities and mortgage bonds at $ 35 billion unchanged. This step should help avoid sharp fluctuations in the financial markets.

Nevertheless, experts warn that we should not expect a quick influx of liquidity. Crypto analyst Fefe Demeny emphasizes that the curtailment of quantitative easing (QE) is being postponed, which means that the expected new bullish trend in the market is still in question. Federal Reserve Chairman Jerome Powell confirmed that the pace of balance sheet reduction will slow down, but the process will take longer.

The updated forecast also states that US economic growth will slow to 1.7% instead of the previous 2.1%. Inflation remains a threat, and new trade tariffs may delay the achievement of price stability. At the same time, financial markets, including the cryptocurrency sector, reacted positively to the news. According to Santiment analysts, the crypto market continues to move in unison with the S&P 500, although altcoins may experience greater volatility.

Against this background, Bitcoin rose above $ 85 thousand, while Ethereum, Solana, and XRP added 5%, 7%, and 10%, respectively. Investor interest is also fueled by Donald Trump’s expected speech on digital asset policy. At the same time, Powell warns that although the US economy is showing resilience, the consumer sector is weakening, and inflation remains too high. The regulator is ready to adjust its policy depending on developments.