Crypto prices and Fed interest rates

On April 28, 2026, Bitcoin (BTC-USD) and Ethereum (ETH-USD) prices fell, opening at $77,368.28 and $6,236.45 respectively, down 1.6% and 2.3% from the previous day, ahead of the Federal Reserve's (Fed) meeting. This decline was likely due to investors locking in profits and reducing exposure to cryptocurrencies in anticipation of potential rate hikes, which typically make holding cryptocurrencies less attractive.

The cryptocurrency market is sensitive to interest rate changes, with rising rates driving investors away and declining rates drawing them back. This is because cryptocurrencies do not offer cash flows like bonds, making them less appealing when interest rates are high. Conversely, lower interest rates make holding cryptocurrencies more attractive, potentially boosting their prices.

With the Fed's meeting approaching, investors should watch for the central bank's interest rate decision and forward guidance. Additionally, upcoming economic data releases, such as the non-farm payroll report, will provide insights into the job market's strength and could influence the Fed's next move. Lastly, the market will be watching for any further developments or regulatory clarity on cryptocurrencies, which could also impact prices.