The Fed Holds Interest Rates at 4.5%

Federal Reserve (FOMC) and Monetary Policy - The Federal Reserve decided to keep interest rates steady at 45% [2] - Quantitative tightening (QT) continues, with the Fed reducing its holdings of Treasury securities and agency mortgage-backed securities, although the pace has slowed [2][3] - The market is pricing in a higher probability that the Fed will hold rates steady in September [11][48] - Tariffs could cause a one-time price increase, influencing the Fed's decisions regarding rate cuts [26][27][30] Crypto Market Analysis - Lower interest rates and no quantitative tightening typically lead to outperformance of altcoins or higher-risk assets [7] - Bitcoin has outperformed altcoins during quantitative tightening and higher interest rates [7][8][9] - Altcoins have been bleeding against Bitcoin, with altcoins down against ETH (Ethereum) by approximately 45% since ETH went home back in April [8][19] - The industry anticipates all Bitcoin pairs may decline around September or October, potentially due to unmet expectations of rate cuts [15][17] Market Outlook and Strategy - The industry expects the 10-year yield is likely heading back up to 5%, and the dollar is expected to build a base over the next several months, potentially rising in 2026 [20] - Ethereum is expected to break through $4,000 within the next few months [22] - Bitcoin and Ethereum dominance could increase together, with liquidity flowing into these "blue-chip" cryptocurrencies [23][24] - Assets that are performing well are more likely to continue performing well [44]