Bitcoin Spikes 4% After Federal Reserve Maintains Rates At FOMC
The Federal Reserve says it doesn’t expect interest rate cuts in the near term so long as inflation remains elevated.
Bitcoin (BTC)’s price spiked on Wednesday following the latest Federal Open markets Committee (FOMC) meeting, at which the Federal Reserve announced no changes to interest rates.
The decision keeps the central bank’s benchmark rate between 5.25% and 5.50%, and pushes back investors’ hopes of a more dovish pivot for markets in the near term.
- Bitcoin traded for $62,000 one hour before the announcement, before shooting to $64,600 as the updated benchmark rate was revealed.
- In a statement , the central bank noted that economic activity in the country continues to expand, unemployment remains low, and inflation remains elevated.
- “The Committee does not expect it will be appropriate to reduce the target range until it has gained greater confidence that inflation is moving sustainably toward 2 percent,” wrote the Fed.
- According to CME FedWatch , the market believes interest rates will remain flat at the next FOMC in May, but is pricing in 60% odds of a 25 basis point reduction in June.
- Bitcoin’s price fell from $74,000 last week as Bitcoin ETF net flows slowed substantially, then flipped negative over the past two days.
- The outflows followed a hotter-than-expected inflation reading in the U.S. on March 12, clocking in at 3.2% for February.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
You may also like
The Kiwi defies hot US inflation as Fed pause bets weaken the USD
Apple says iPhone Duo demand is "unprecedented," pre-orders sold out within minutes, deliveries postponed until January next year
Within minutes of opening pre-orders for Apple's first foldable screen phone, iPhone Duo, the delivery period was extended to the end of January next year, affecting all colors and storage configurations. Analysts from Bloomberg Intelligence have raised their sales expectations, believing that sales may surpass the target of 14 million units and $28 billion. On Friday, Apple's stock price rose slightly by 0.43%.
Credit panic hits AI trading: CoreWeave bond yields remain high, Nasdaq posts biggest weekly drop since late June
Concerns over the debt risk of AI infrastructure companies continue to rise. Yields on some CoreWeave bonds briefly exceeded 15% on Thursday and remained elevated on Friday. CoreWeave's stock price plunged another 12% on Friday, and the Nasdaq Composite Index fell about 4.5% for the week. Analysts point out that as capital costs rise to unbearable levels, companies will have no choice but to reduce their capital expenditures.
Crypto prices
More
