Bitcoin Magazine

Bitcoin Barely Budges as Fed Keeps Interest Rates Unchanged

Bitcoin was trading higher on Wednesday — but only slightly — after the Federal Reserve decided to keep interest rates still. 

The leading cryptocurrency was recently priced at close to $64,402 per coin, after moving up by nearly 1% in the hour following the announcement. 

As expected, the U.S. central bank left the federal funds rate in the 3.50%-3.75% range. Three of the 12 members of the policy-setting Federal Open Market Committee “preferred” a quarter-percentage-point hike at this meeting. 

BREAKING:  Federal Reserve officially leaves interest rates unchanged at 3.5-3.75%. pic.twitter.com/mkMnSee2ou

— Bitcoin Magazine (@BitcoinMagazine) July 29, 2026

Speaking to the press following the announcement, the Fed’s new Chair, Kevin Warsh, revealed little about where the central bank would go next. 

“The Fed’s on the case,” he said. “I’ve been heartened by the reception I’ve received. We’re committed as ever to deliver.” 

He added that the July rate decision was “a rigorous review of the economic situation.”

“I wouldn’t characterize what we did as anything like a pause,” he said. “I would characterize what we did as a rigorous review of the economic situation. I would characterize what we did as a review of the big, hard questions.”

Warsh, who took over in May, has said he has “no tolerance” for inflation that has been running above the central bank’s target for more than five years.

Bitcoin has typically performed well in a low-interest rate environment, and crypto investors have been hoping the Federal Reserve would cut rates to boost digital assets. 

President Donald Trump since taking office has pushed for lower interest rates, and clashed with ex-Fed chair Jerome Powell over the matter. 

For now, Warsh doesn’t seem like he’ll be going in that direction as sticky inflation continues to bother Americans. 

The Federal Reserve started aggressively raising rates in 2022 in a bid to control 40-year-high inflation spurred by the COVID-19 pandemic. Bitcoin was hit by the tightening.

Then, in 2024, the central bank repeatedly cut rates. It has been hesitant to lower them since the end of 2025. 

This post Bitcoin Barely Budges as Fed Keeps Interest Rates Unchanged first appeared on Bitcoin Magazine and is written by Mathew Di Salvo.

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Bitcoin Magazine

Fed Chair Warsh: No Bailout for Crypto Industry in Crisis

Federal Reserve Chair Kevin Warsh told the House Financial Services Committee on July 14 that the central bank will decline to rescue the cryptocurrency industry in a crisis, a message he delivered during his first semiannual monetary policy testimony as chair.

The exchange came from Rep. Brad Sherman (D-CA), a longtime crypto skeptic, who asked whether the Fed would backstop failing digital-asset firms the way it supported money market funds in 2008. Warsh rejected the premise. “We do not want to be in the bailout business, full stop,” he said. He added, “We want to be in a position where we’re not bailing out anybody, including crypto.”

Warsh, who took office May 15 and presided over his first FOMC meeting in June, framed the stance through his own history. 

As a Fed governor under Chairman Ben Bernanke, he helped design the 2008 rescue effort. “I still have the scars from the 2008 financial crisis,” he said. “That is not something we want to repeat.” He argued that the post-crisis bailouts bred moral hazard, and he wants to spare digital assets the same fate.

For a market that spent years seeking legitimacy alongside traditional finance, the comments draw a hard line. Warsh, described as the first crypto-native Fed chair, has treated Bitcoin as a gauge rather than a ward of the state. During his nomination hearing he called Bitcoin “not a substitute for the U.S. dollar,” and he has used its price as a thermometer for whether monetary policy sits in the right place.

Warsh chimes in on the GENIUS Act rules deadline

The warning lands days before a pivotal deadline. Rules to implement the GENIUS Act, the stablecoin law enacted in 2025, are due Saturday, and Warsh confirmed the Fed is “racing” to publish its proposals on time.

The statute pays stablecoin holders ahead of other creditors when an issuer fails and requires full reserves behind each coin. With the stablecoin market near $310 billion, Sherman pressed the point that a run on one issuer could spread across the sector.

Warsh declined to offer an absolute pledge. He told lawmakers the Fed would act to limit “extraordinary” risks over the next four years, language that leaves room for intervention in a systemic event. American Banker noted that he declined to rule out any future step-in.

At the Senate Banking Committee the following day, Warsh urged banking regulators to coordinate on GENIUS Act rulemaking to prevent regulatory arbitrage, a race that lets firms hunt for the lightest oversight. 

He paired that call with a defense of Fed independence on monetary policy and a pledge to shrink a balance sheet that sits near $6.7 trillion.

The takeaway for crypto is a market-discipline era: the Fed will set the rules of the road, yet firms that overreach will bear the cost of their own failures. For an industry that courted federal backing, Warsh’s message asks it to stand on its own.

This post Fed Chair Warsh: No Bailout for Crypto Industry in Crisis first appeared on Bitcoin Magazine and is written by Micah Zimmerman.