The US central bank left its benchmark rate unchanged on October 28, 2026. The target range for the fed funds rate stays at 3.75 to 4 percent. What stands out is not the decision itself but h
The US central bank left its benchmark rate unchanged on October 28, 2026. The target range for the fed funds rate stays at 3.75 to 4 percent. What stands out is not the decision itself but how it came about: two of the twelve voting members dissented, and both wanted to raise the rate rather than cut it. Anyone who spent recent months betting that cheaper money would support the crypto market from below has to reorder that expectation.
The Federal Open Market Committee, or FOMC, sets the range within which the overnight rate between American banks is meant to trade. Since the decision that range remains at 3.75 to 4 percent, written by the central bank as “3-3/4 to 4 percent”. For investors it is the benchmark against which every other yield is measured, including the yield on a staking product.
The statement describes the economy as strikingly robust. Activity is expanding “at a strong pace”, says the decision text of the Federal Reserve, job gains are keeping pace with the growth of the labor force, and the unemployment rate has changed little. A central bank that sees a strong economy and a stable labor market has no reason to loosen policy. That is what separates this pause from the pauses of last year, which were read as a prelude to a cut.
A target range describes a band with a lower and an upper bound, within which the central bank holds the overnight rate through its operations in the market. There is no single fixed interest rate behind it. As long as that band holds, credit in dollars stays expensive, and expensive money weighs on assets that produce no running income. Bitcoin and Ether are among them.
The vote was ten to two. Lisa D. Cook and Beth M. Hammack voted against the decision. According to the statement, both would have raised the target range by a quarter point at this meeting, to 4 to 4.25 percent. Two dissents are rare at the FOMC, and two dissents pointing the same way are a clear signal.
The direction of the objection is what matters for the interpretation. A committee member who votes against a pause because they want a cut is worried about growth and employment. Whoever votes against a pause because they want a hike sees an inflation problem that the majority is still sitting out. In October 2026 the objection came from the second direction. The monetary policy debate has changed its subject. The question on the table now is whether the next move goes up.
For the crypto market that shifts the range of plausible paths. Before this meeting, expectations ran from a pause to a cut in December. After this meeting a hike is in the field as well, documented by two votes cast by name and not by an analyst estimate.
The target range stays unchanged until the next decision on December 9.
The decisive clause of the statement is short. “Inflation remains elevated”, the committee writes. It adds that collecting further information will help the committee determine the appropriate stance of monetary policy so that inflation returns to the 2 percent goal in a timely manner. A sentence that describes the return to the inflation goal as still open does not rule out a hike.
Wording of this kind is known in the trade as forward guidance: the verbal preparation of markets for future steps. This time the guidance is deliberately kept open. The committee names neither a date nor a condition and points to the data instead. Anyone deriving a December cut from it reads an expectation into a text that does not carry one.
Bitcoin trades at around $81,200 on the evening of October 28, 2026, practically level with the previous day. Over seven days it stands at a loss of a good 4 percent. Ether sits at roughly $2,358. The reaction to the decision failed to materialize, even though a Fed rate decision is one of the few dates that can move the entire crypto market at once.
A missing price jump usually means that the market had priced the outcome in beforehand. A pause was expected, so it was already in the price. The two votes for a hike are the real news of the day, and news of that kind rarely works within minutes. What it changes is the frame in which the coming weeks are traded.
A plain consequence for expectations follows from this: the rate path delivers little tailwind this quarter. Anyone who built a position on the argument that money will soon be cheaper relies on an assumption that the decision of October 28 does not support. You will find a crypto exchange licensed under the European MiCA regulation in our comparison of the best crypto exchanges; the way you buy does not change with the rate decision.
Alongside the decision the Fed publishes an implementation note with the technical rates. According to the Implementation Note of October 28, 2026, the rate on bank reserve balances, known as IORB, stays at 3.90 percent effective October 29. The discount rate for primary credit stands at 4.0 percent, and the rate for overnight reverse repurchase agreements in the other direction at 3.75 percent.
IORB is the rate the central bank pays commercial banks for parked money. As a point of comparison it serves better than any headline, because it describes what a dollar holding earns without price risk and without counterparty risk. Every crypto yield, whether from staking, lending or a stablecoin product, has to measure up to that number, after fees and with the price risk of the coins involved taken into account.
The committee is sticking to its policy of ample reserves in the banking system. According to the implementation note, the trading desk of the New York Fed is to buy Treasury bills as needed to maintain an ample level of reserves, and if necessary other government securities with a residual maturity of up to three years. Maturing principal from the Treasury portfolio is rolled over at auction, and principal from agency mortgage-backed securities is moved into Treasury bills.
This mechanism matters more to crypto investors than the dry language suggests. Scarce bank reserves have repeatedly caused strains in the money market, and such strains feed through funding costs into every risk asset. A central bank that explicitly announces it will keep reserves ample takes that risk out of the market without touching the policy rate. Monetary policy and liquidity policy run separately here.
Self-custodied coins carry no counterparty risk that a rate decision could aggravate.
Leveraged positions react to rate decisions twice over: through the price and through the funding costs. With a perpetual future, a futures contract without an expiry date, market participants pay each other a funding rate at fixed intervals. That rate follows the gap between the contract price and the spot price and rises sharply in nervous phases. A rate corridor with a hike in the room is one source of such nervousness.
The liquidation price is the threshold at which the exchange force-closes a leveraged position because the margin no longer covers it. At five times leverage that threshold sits roughly 20 percent away from the entry, at ten times leverage around 10 percent. Bitcoin lost a good 4 percent over the past week without any news behind it. A move of that size is already enough to put a position under pressure at high leverage.
Six weeks lie between today and the next rate decision on December 9. Anyone who wants to hold a leveraged position beyond that date carries the risk of an unexpected step upward. Topping up the margin or reducing the leverage costs less in quiet weeks than in the hour after a decision.
Under German tax law, crypto assets fall under the rule for private disposal transactions. Section 23 (1) sentence 1 no. 2 of the Income Tax Act covers “disposal transactions in other assets where the period between acquisition and disposal is not more than one year”. Conversely, the gain stays tax-free as soon as more than a year lies between purchase and sale. On top of that, under subsection 3 sentence 5, gains stay tax-free if total gains from private disposal transactions remain below 1,000 euros in the calendar year.
This deadline is the reason a rate decision works differently for a German investor than for an American one. A sale out of rate anxiety inside the one-year window triggers income tax on the entire gain, at the personal tax rate. At the top rate this effect can be larger than the price decline the sale was meant to protect against. A portfolio tracker with acquisition dates shows which of your coins reach the one-year mark and when.
Keeping the cases apart matters. The one-year rule concerns the sale of coins you hold. A leveraged contract on a price is treated differently for tax purposes, and staking income follows rules of its own as well. For how your specific case is handled, tax advice is responsible, not a news article.
With 3.90 percent paid on bank reserves, the arithmetic for income from the crypto market shifts. Anyone staking Ether currently earns a yield in the low single digits, and that yield accrues in Ether, not in euros or dollars. The Ether price stands around 5.5 percent lower over seven days. A staking yield in the region of two to three percent a year cannot offset a price decline of that size within a week.
Lending offers carry counterparty risk on top. A rate paid by a platform is only as safe as the platform itself, and with a pause at a high level the refinancing costs stay high for every market participant. Self-custodied coins in a hardware wallet do not carry that risk, but they do not earn anything either.
For the comparison between direct ownership and an exchange-traded product, the cost side is worth a look. Investing through an exchange-traded crypto product means paying an ongoing management fee and not holding the coins yourself; in return, custody in your own hands falls away. Both routes still have their place after the rate decision, only the return expectation is lower with expensive money than with cheap money.
The next meeting of the FOMC takes place on December 8 and 9, 2026. The date carries an asterisk in the meeting calendar of the Fed, and that asterisk means the committee publishes a Summary of Economic Projections. This document contains the rate expectations of the individual committee members for the coming years, known as the dot plot.
After two votes for a hike, this dot plot is the most important crypto date of the quarter. If the dots shift upward, the turn toward lower rates for 2027 is off the table, and the market has to digest a longer phase of expensive money. If they stay where they are, the objection from October was a minority position. The statement itself leaves this question open and puts the data arriving until then in the foreground.
Between the meeting dates the inflation figures remain the most important metronome. Every release that confirms elevated inflation strengthens the position of the two dissenters. The price levels Bitcoin was orienting itself around before the decision have survived it unchanged.
The rate decision of October 28, 2026 changed nothing about the price of money and a great deal about expectations. Three steps follow from it for the coming weeks:
(As of October 28, 2026. This article is not investment advice. Prices and fee structures change; check the terms with the provider before you buy.)
