The world eagerly awaited the United States’ CPI and interest rate decisions today. To the surprise of many, the Federal Reserve chose to keep the interest rate unchanged, despite its known impact on Bitcoin (BTC) and other risky assets.
Bitcoin Price and the Federal Reserve’s Decision
Following the Federal Open Market Committee (FOMC) meeting, it was revealed that the US Federal Reserve officials maintained the interest rates between 5.25% and 5.50%, defying the recent interest rate cuts by G7 countries. This decision highlighted the Fed’s stance on monetary policy. For the latest technology news, visit NEWSLINKER.
Looking back at the previous week, the Bank of Canada reduced the interest rate by 0.25% due to stagnant inflation. This move was followed by the European Central Bank (ECB) also cutting its interest rate by 0.25%, signaling a positive outlook. Moreover, the Central Bank of Denmark also decided to lower the interest rate to support their local currency.
Despite global interest rate cuts, Bitcoin experienced price fluctuations from $66,190 to $70,100, causing unease among investors. Notably, BTC’s price dropped noticeably after the Federal Reserve’s decision to keep the interest rate steady. At the time of writing, BTC was priced at $68,200, showing a 1% increase in the last 24 hours, compared to above $69,000 before the announcement.
In addition to price movements, the 24-hour trading volume decreased by 7.60% to $34 billion, indicating reduced volatility. The lowest and highest values for BTC in the last 24 hours were $66,902 and $69,977, respectively. Expectations that the Federal Reserve’s decision would push BTC’s price back to $70,000 and test the resistance level were not met.
Future Market Outlook
Historically, Bitcoin’s price has often mirrored overall market trends. The stock market developments are believed to influence BTC, with ETFs playing a crucial role. Currently, Bitcoin investors are navigating uncertainties and considering spot BTC ETFs as part of their investment strategy.
Following a 19-day period of ETF inflows, there was a 2-day period marked by capital outflow led by Grayscale Investments. These fluctuations underscore the ongoing uncertainties in the cryptocurrency market. Investors are advised to conduct thorough research due to the high volatility associated with cryptocurrencies.
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Disclaimer: The information provided in this article is not investment advice. Investors should be mindful of the risks associated with cryptocurrencies and conduct their own research before making investment decisions.