Bitcoin trades around $84,393.09, an increase of nearly 4% following the Federal Reserve decision to maintain its target range of 4.25% to 4.5% without changing interest rates.
Policymakers did not support rate cuts, but they repeatedly hoped for two cuts in the second half of 2025. This is a mixed signal of risky assets such as Bitcoin.
The market predicted there was little chance of a rate rise at FOMC this week, but investors were closely tracking economic growth and inflation updates. The Fed also cut its 2025 GDP growth forecast to 1.7%, down 0.4% points from its December forecast, focusing on fears of a slump in the economy.
Inflation expectations have also risen, highlighting the Fed’s careful approach. The Fed has also announced an additional slowdown in its “quantitative tightening” program, which has steadily rewind central bank bond holdings. This step shows more of the Dub orientation, but analysts say it may not be enough to cause a big gathering in Bitcoin.
Stocks rose on Wednesday after the Federal Reserve held interest rates unchanged and reaffirmed its prospects for rate cuts in the second half of 2025.
The Dow Jones industrial average rose 300 points, 0.7%, while the S&P 500 rose 1%. NASDAQ Composite led the rally, moving forward with 1.4%.
“Reducing inflation could encourage the Fed to accelerate rate cuts, typically providing more liquidity to the market, thereby increasing the prices of Bitcoin and other risky assets,” said Matt Mena, a 21-share crypto research strategist.