The Federal Reserve kept interest rates unchanged with a vote of 8 to 4; Bitcoin briefly fell below $75,000

On April 30, Bitcoin briefly dipped to around $75,000, before making a slight rebound. On April 29, the Federal Open Market Committee (FOMC) voted 8-4 to keep the target range for the federal funds rate unchanged at 3.5% to 3.75%, marking the first time since October 1992 that four committee members cast dissenting votes. Analysts said the main driver of the volatility was the split among voters and the tone of the statement.

FOMC vote split: The four dissenters’ reasons differ

Under the FOMC’s April 29 decision, the four dissenting committee members held different views. Board member Stephen Miran voted in favor of cutting rates by 25 basis points; Cleveland Fed President Beth Hammack, Minneapolis Fed President Neel Kashkari, and Dallas Fed President Lori Logan supported holding rates steady but opposed including any language suggesting a more accommodative policy in the statement.

The FOMC statement said that rising global energy prices have kept inflation elevated, and warned that developments in the Middle East create “a high degree of uncertainty” for the outlook. On the same day, The Wall Street Journal reported that U.S. President Trump had instructed aides to prepare for a long-term blockade of Iran to curb oil exports and pressure nuclear negotiations.

Bitcoin and the crypto market reaction

After the decision was released, Bitcoin fell below $75,000, hitting a two-week low, before rebounding to $75,440. Ethereum (ETH), Solana (SOL), and XRP continued their early session declines, and all fell to two-week lows.

Matt Mena, senior crypto research strategist at 21Shares, said: “It’s not surprising that the Federal Reserve kept rates unchanged, but those dissenters who rejected any guidance toward an accommodative policy poured cold water on market expectations for a shift.”

Powell confirms staying on as governor; Warsh passes through the nomination committee vote

Federal Reserve Chair Jerome Powell, at his April 29 press conference, confirmed that his chair term would end in May but that he would continue serving as a Fed governor for a period of time that had yet to be determined. Powell said that the Trump administration’s legal actions against the Fed are “unprecedented in the Fed’s 113-year history,” and are undermining the institution’s independence.

Earlier that same day, Federal Reserve nominee Kevin Warsh passed a vote at the Senate Banking Committee, and the nomination was submitted to the full Senate for consideration. Warsh had described digital assets as a “component part” of the financial system, and disclosed investments held in multiple crypto companies and tokens.

Analysts: The Clarity Act is more important than the FOMC

Theo’s Chief Investment Officer Iggy Ioppe said that for Bitcoin, the more important catalyst right now is the “Clarity Act,” not the FOMC decision. He noted that the bill would formally establish Bitcoin as a digital commodity under the oversight of the Commodity Futures Trading Commission (CFTC), eliminate the risk of excessive SEC involvement, and provide a safe harbor for banks holding Bitcoin. The bill is still under review in Congress, and issues surrounding stablecoin provisions and moral concerns remain to be resolved.

Sygnum Bank investment strategist Can-Luca Köymen said that the earnings reports soon to be released by the “Magnificent Seven” such as Alphabet, Amazon, Meta, and Microsoft will be near-term catalysts for risk assets including cryptocurrencies, and added that “any disappointment around the monetization of artificial intelligence could amplify or offset any tone set by Powell.”

Frequently Asked Questions

What is the historical significance of this FOMC voting outcome?

Based on the FOMC’s April 29 decision, this 8-4 result was the first time since October 1992 that four committee members cast dissenting votes, and the reasons for the four dissenters were clearly divergent: one supported a rate cut, while three opposed adding language in the statement that leaned toward accommodative policy.

What was Bitcoin’s immediate reaction to the FOMC decision?

According to a report by The Block, after the decision was announced, Bitcoin fell from around $76,200 to below $75,000, and then rebounded to $75,440 within the first hour; ETH, SOL, and XRP also fell in sync to two-week lows.

What are the arrangements after Powell steps down and how is the Warsh nomination progressing?

At the April 29 press conference, Powell confirmed that he will continue serving as a Fed governor for a period of time after his chair term ends in May. Kevin Warsh has passed the Senate Banking Committee vote, and the nomination has been submitted to the full Senate for consideration.