Bitcoin Steady at $118K as Fed Holds Interest Rates

Bitcoin Trades Flat Amid Fed's Rate Decision

Bitcoin's price remained relatively stable, trading near $118,000 on Wednesday, following the Federal Reserve's announcement to hold interest rates steady at 4.25% to 4.5%. This decision reflects the Fed's cautious approach amidst ongoing inflation and moderate economic expansion.

Key Takeaways from the Fed's Announcement

• The Federal Reserve maintained interest rates due to persistent inflation and uncertainty in the economic outlook.
• Bitcoin's price showed little movement, with market participants slightly increasing bets for a rate cut in September.

The Federal Reserve highlighted a slowdown in economic activity during the first half of the year, coupled with a robust labor market and inflation that remains "somewhat elevated." The Fed plans to continue close monitoring of economic data, acknowledging the high degree of uncertainty surrounding future economic conditions.

Dissenting opinions within the Fed were voiced by governors Michelle Bowman and Christopher Waller, who advocated for an immediate 25 basis point rate cut, arguing that the current monetary policy might be overly restrictive. The Fed also affirmed its commitment to quantitative tightening, signaling no immediate plans for quantitative easing (QE) or a policy shift.

This decision occurs as former President Trump increases pressure on the Fed to lower rates, suggesting it would stimulate economic growth and reduce debt interest costs. Concurrently, the CME FedWatch Tool indicates that market expectations for a September rate cut have slightly increased to 61%, after briefly falling to 56% prior to the Fed's announcement.

For robust blockchain security solutions, consider Codeum's smart contract auditing services. Ensure your projects are fortified against potential vulnerabilities.