TLDR:Fed kept rates at 4.25–4.5% for the fifth straight meeting, citing sticky inflation.Bitcoin dipped below $116K after Powell warned against premature rate cuts.Two FOMC members pushed for a cut but failed, showing cracks in consensus.Liquidity backstops stay active as traders await July jobs data for cut signals.The Federal Reserve left interest rates unchanged. That’s the fifth straight hold, and traders are feeling the pressure. Crypto markets moved fast, with Bitcoin and Ethereum leading a sharp drop. Jerome Powell pointed to steady jobs, stubborn inflation, and data still too mixed for cuts. For now, the wait drags on, and risk assets are paying the price.Bitcoin Falls as Fed Stays CautiousThe FOMC decision kept the federal funds rate locked between 4.25 and 4.5 percent. Powell said growth cooled in the first half of 2025 but remained stable. He also stressed that inflation still sits above the Fed’s 2 percent goal.Crypto reacted instantly. Bitcoin slid below 116,000 dollars, shedding 2 to 3 percent in hours. Ethereum and other altcoins dropped around 3 percent. On X, traders blamed “tight policy pressure” for what one called a “waterfall sell-off.” FOMC Update: No Rate Cuts – Powell Keeps Markets on Edge! The Federal Open Market Committee (FOMC) meeting ended with no changes to monetary policy; interest rates remain at 4.25-4.5%, the fifth consecutive hold. Fed Chair Jerome Powell noted the US economy is… pic.twitter.com/e7drabkJ1f— IT Tech (@IT_Tech_PL) July 30, 2025Powell avoided any firm signal on rate cuts. He explained that September’s decision would depend on incoming data. He also underlined that the Fed remains independent despite political calls for faster easing.EndGame Macro pointed out that two FOMC members even pushed for a cut but didn’t win the vote. That split, while small, signals the first cracks in what has been a united front. Powell, however, stood firm, insisting that inflation control still comes first.Hidden Liquidity Moves Behind the ScenesWhile rates stayed frozen, liquidity tools are quietly at work. The Standing Repo Facility remains capped at 500 billion dollars, effectively offering banks a safety valve. EndGame Macro described this as the Fed’s “silent backstop,” especially as quantitative tightening continues to drain cash.The Fed unsurprisingly kept rates on hold at 4.25–4.5%, but the real story is what they did and didn’t say about liquidity. On the surface, the statement reiterated familiar language with inflation still above target, labor market still solid, and uncertainty still high. But… https://t.co/ioN6sq5ZGU pic.twitter.com/BjZLTP1BWP— EndGame Macro (@onechancefreedm) July 30, 2025Traders now look to the July jobs report for the next clue. A softer labor market could raise cut odds. If that happens, crypto could find relief. But for now, the pain is clear, and risk-heavy assets like Bitcoin remain under pressure. The post Fed Holds Rates Again as Crypto Cracks Under Tight Policy appeared first on Blockonomi.