Fed Holds Rates at 3.75%, Bitcoin Drops Below $80K

Key Takeaways

• The Federal Reserve voted 10–2 to maintain its target rate at 3.75–4.00%, with two dissenters favoring a 25-basis-point increase.
• European Central Bank President Christine Lagarde announced she will step down from her role on 7 February 2027.
• Bitcoin surrendered its weekly gains to fall below $80,000 while Nasdaq 100 futures fell 1.2% to near 29,620.
• Global central banks showed clear divergence, with the Bank of Canada hiking rates to 2.50% and the Reserve Bank of New Zealand holding at 2.75%.

On 29 October 2026, the U.S. Federal Reserve voted 10–2 to maintain its benchmark federal funds rate at 3.75–4.00%, driving Bitcoin below the $80,000 mark and pulling Nasdaq 100 futures down 1.2% to near 29,620 during Thursday's trading session. The policy hold arrived alongside a structural announcement from the European Central Bank confirming President Christine Lagarde will resign effective 7 February 2027. At PropFirmScan, our desk monitored these interconnected developments across European and Asian market sessions to assess how macro liquidity changes impact trader risk limits.

Federal Reserve Holds Benchmark Rate Amid Internal Policy Split

The Federal Reserve's decision to maintain the federal funds target rate at 3.75–4.00% was not unanimous. Federal Reserve Governor Lisa D. Cook and Cleveland Fed President Beth M. Hammack dissented, both voting in favor of a 25-basis-point rate increase. This internal division highlights ongoing debate within the central bank regarding the persistence of inflationary pressures.

Following the announcement, U.S. equity futures showed pronounced divergence. Tech-heavy Nasdaq 100 futures dropped 1.2% to trade near 29,620, while S&P 500 futures lost 0.38% to around 7,750. In contrast, Dow Jones futures rose 0.37% to near 52,890. Analyzing the rate decision impact on professional traders shows how divergent asset pricing forces funded accounts to adjust exposure rapidly across index futures.

Crypto assets faced heavy selling pressure immediately after the rate announcement. Bitcoin gave up the majority of its weekly advances, breaking down through the $80,000 threshold. Traders executing day trading models saw heightened volatility across digital asset pairs as speculative leverage unwound.

ECB Leadership Transition and European Market Pressures

In Europe, the ECB confirmed that President Christine Lagarde informed the Governing Council of her intent to step down on 7 February 2027. The upcoming leadership change occurs during a challenging macroeconomic climate for the euro area, characterized by tighter financial conditions, a sharp sell-off in French government bonds, and a monthly surge of approximately 40% in European natural gas prices.

Currency markets reflected this ongoing uncertainty. EUR/USD remained capped under 1.1150 in European trading after hovering near 1.1140 in the Asian session, staying close to its lowest point since May 2025. Meanwhile, EUR/CAD extended its continuous decline since 16 October, trading around 1.5580. Reviewing How to Trade Central Bank Rate Decisions on Prop Accounts is essential for capital preservation when single-currency volatility spikes on structural headlines. Traders should also complete a thorough prop firm red flag analysis before navigating fast-moving macro events.

Global Central Bank Divergence Across Commonwealth Markets

Policy decisions across other major central banks highlighted widening global divergence:

• **Bank of Canada (BoC