As expected, the US Fed didn’t lower the key interest rates in the first FOMC meeting of the year.
BTC’s price had calmed over the past day or so at around $102,000 – $103,000 but started to lose value almost immediately after the decision came out.
During the last FOMC meeting for 2024, the US Federal Reserve cut the interest rates by 25 basis points but hinted that the reductions could be paused for 2025 due to the rising concerns about growing inflation.
After his inauguration, the country’s new President, Donald J. Trump, insisted that the interest rates should be lowered, but the overall expectations ahead of the meeting were that the central bank would keep them as such – 4.25% to 4.5%.
The CPI data that came out last week showed that the inflation was not as high as many anticipated. Nevertheless, the Fed’s decision was indeed to refrain from lowering the rates now, perhaps in anticipation of further inflation data as well as Trump’s upcoming monetary changes.
In terms of crypto impact, the Fed’s decision to maintain the interest rates had an immediate effect on prices. Bitcoin, for example, stood close to $103,000 but dropped by about a grand within the first few minutes following the announcement.
Read the full article here