Cryptocurrency markets do showed limited momentum this weekwith both Bitcoin and Ethereum stuck in narrow price ranges. This price action comes hot on the heels of the US Federal Reserve decides to maintain interest rates unchanged. Traders and investors appeared to have taken a wait-and-see approach, leaving the largest digital assets stuck in consolidation without any outbreak both directions.
Fed policy and market expectations
The Federal Reserve chose to maintain a benchmark interest rates at 3.50-3.75% at the latest policy meeting on Wednesday, a decision that markets had largely anticipated. Still, the meeting marked the first pause in policy easing since July 2025, ending a period in which the central bank cut rates three times last year as it assessed how the economy responded to President Donald Trump’s combative fiscal and trade policies.
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By choosing to forego further cuts, policymakers have now taken a more cautious stance before adjusting interest rates again. However, two governors disagreed and preferred a quarter-point reduction. Both Stephen Miran and Christopher Waller called for a 25 basis point cut.
The pause reflects continued caution on inflation and economic data, which suggest further easing will not occur without clear evidence of weaker economic conditions. In his statement, the Federal Reserve noted that the Committee is strongly committed to supporting maximum employment and returning inflation to the 2% target. These types of “higher-for-longer” messages can dampen risk appetite, and cryptocurrencies, seen as risky assets, are feeling the impact.
Bitcoin and Ethereum anchored in tight consolidation
The recent price action between Bitcoin and Ethereum continues to rage indicate a market stuck in indecision. Bitcoin briefly tested the psychological level of $90,000 but failed to gain acceptance above, falling back to a narrow range around $87,000 to $89,000.
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A recent rejection of $90,000 has had limited upside and has kept both buyers and sellers cautious as neither side has been able to take control. So is this lack of momentum reflected in a steady outflow of Spot Bitcoin ETFs, which witnessed an outflow of $28.1 million in the last 24 hours.
Ethereum has mirrored Bitcoin’s behavior almost step by step. The price broke above $3,000 very briefly in the last 24 hours, but has since been rejected and is trading back around $2,900. This move causes it to oscillate within a tight band without causing a decisive breakout or breakdown.
Interestingly, Spot Ethereum ETFs, on the other hand, had inflows of $28.10 million in the last 24 hours. Although indicators on the chain such as increasing portfolio participation show underlying commitment, these signals have yet to translate into sustained bullish momentum. Profit taking near the $3,000 resistance and uncertainty continue to limit short-term gains.
As it stands now, both Bitcoin and Ethereum seems likely to remain limited to their current range until a stronger catalyst emerges.
Featured image from iStock, chart from Tradingview.com