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Bitcoin Holds $100K After Fed Decision

Bitcoin Holds $100K After Fed Decision

Crypto Market News

Bitcoin Remains Above $100,000 Despite Fed Rate Hold

The Federal Reserve held interest rates steady at 4.25%-4.50% on Wednesday, a decision that sent ripples through the financial markets. While the statement omitted previous language suggesting progress on inflation, Fed Chair Jerome Powell emphasized that future rate adjustments depend on incoming economic data, labor market trends, and inflation figures.

Key Takeaways:

  • The Fed maintained its target range for the federal funds rate.
  • Powell avoided committing to future rate cuts.
  • Bitcoin briefly dipped after the announcement but held above $100,000, trading around $101,500.

Following the Fed's announcement, Bitcoin experienced a 1% decline. However, it quickly recovered, staying above the $100,000 mark. This resilience is notable, especially considering the recent market volatility triggered by the launch of China's DeepSeek AI, which briefly pushed Bitcoin below $100,000 and resulted in a $1 trillion drop in global market capitalization.

The Fed's decision reflects a cautiously optimistic outlook on the US economy. The central bank highlighted robust economic growth and consistently low unemployment rates, suggesting that immediate rate cuts are unnecessary. This contrasts with President Trump's advocacy for lower borrowing costs during his second term.

Despite the Fed's stance, market expectations for monetary easing persist. The CME FedWatch tool indicates a 46.5% probability of a 25-basis-point rate cut in June and a 43.5% chance in July. However, the overall probability of further cuts remains below 40% in 2025, suggesting a limited expectation for monetary easing.

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