On March 19, 2025, the Federal Reserve kept its key interest rate unchanged, despite market expectations for a cut. This marks the second consecutive pause in the Fed’s monetary easing process.
The primary reason? Economic uncertainty caused by the trade measures of the Trump administration, including new tariffs that could exacerbate inflationary pressures.
Fed Chair Jerome Powell stated that President Trump’s trade policies are slowing progress toward the 2% inflation target. The Fed now projects that core inflation will remain at 2.8% by the end of 2025, which is higher than previous estimates.
Key Takeaways from the Fed’s Press Conference:
- The Fed is slowing the pace of balance sheet reduction (QT) amid economic uncertainty.
- The interest rate decision remains open, with future steps dependent on economic data.
- New U.S. tariffs could slow inflation decline.
- The U.S. economy remains strong, and the labor market is stable.
- Inflation is above the target level, but long-term expectations remain steady.
- Monetary policy is in a state of uncertainty, with potential for both easing and tightening.
- The risk of recession is low, but liquidity market tensions persist.
The Fed’s decision provided a boost to the crypto market. The total market capitalization increased by 3.14%, reaching $2.81 trillion.
Ripple Wins SEC Lawsuit
Another major event was the conclusion of the long-standing legal battle between Ripple and the U.S. Securities and Exchange Commission (SEC). The SEC officially dropped its appeal regarding XRP’s classification as a security.
However, Ripple’s CEO, Brad Garlinghouse, clarified that the legal battle is not entirely over, as the company continues to fight over specific aspects of the case. The shift from defendant to plaintiff alters the dynamics of the lawsuit, potentially leading to new legal precedents in the crypto space.
Following the SEC’s decision, XRP surged 7.25% in 24 hours, hitting $2.56, before correcting to $2.45.
Additionally, after the SEC’s ruling, crypto exchange Bitnomial announced that it would withdraw its lawsuit against the regulator. Bitnomial had been challenging the SEC’s jurisdiction over XRP futures contracts, a case that underscored the broader uncertainty surrounding crypto regulation.
Trump’s Upcoming Crypto Statement
Another major event in the crypto industry: on March 20, Donald Trump will become the first sitting U.S. president to speak at a digital asset conference.
Trump is set to attend the Blockworks Digital Asset Summit (DAS) in New York, where he will discuss the role of Bitcoin and cryptocurrencies in U.S. financial strategy.
Previously, the Trump administration announced the creation of a National Strategic Crypto Reserve, though the details of the plan did not receive a warm response from the crypto industry.
Analysts believe that Trump’s speech could impact market sentiment and attract institutional investors’ attention.
Market Reaction
Amid these major developments, the crypto market experienced a strong upward move:
- Bitcoin (BTC) rose 3,11%, reaching $85,553.
- Ethereum (ETH) increased 3,68%, trading around $2,009.
- Solana (SOL) jumped 6,14% to $134.09.
- Cardano (ADA) gained 2,87%, trading at $0.7298.
Top Gainers in the Last 24 Hours:
- Four (FORM): +8,17%, now at $1.67.
- Pancake Swap (CAKE): +7,22%, now at $2.53.
- Uniswap (UNI): +6,81%, now at $6.81.
Biggest Losers:
- EOS: -3,69%. The project’s team announced a rebranding into a Web3 bank called Vaulta.
- Polkadot (DOT): -1,57%, now at $4.46.
- TRON (TRX): -1,36%, currently trading at $0.2313.
What’s Next
Experts note that the future direction of the market will depend on:
- The Fed’s monetary policy decisions.
- Inflation trends.
- Macroeconomic policies of the U.S. administration.
Despite ongoing uncertainty, investor sentiment remains moderately optimistic.
This post is for informational purposes only and is not an ad or investment advice. Please do your own research making any decisions.