Bitcoin price falls as the Federal Reserve keeps interest rates steady.
bitcoin 
BTC
-2.76%
‘Prices fell on Wednesday after the U.S. Federal Reserve left interest rates unchanged at their current levels.
The Federal Open Market Committee left the federal funds rate unchanged at its current range of 5.25%-5.50%, as most analysts had predicted. This measure marks the first interest rate freeze in 2024.
“The committee decided to maintain the federal funds rate target range at 5.25% to 5.50%,” the central bank said in a statement.
Inflation has eased but is still rising
“Recent indicators suggest that economic activity is expanding at a solid pace. Job growth has moderated since the beginning of last year but remains strong, and unemployment remains low. Inflation has eased over the past year. “But it still maintains a high standard.” Added.
Regarding the possibility of a rate cut, the Fed said, “The Committee does not anticipate that it would be appropriate to reduce the target range until greater confidence is gained that inflation will continue to move toward 2 percent.”
The world’s largest cryptocurrency by market capitalization fell 2.2% over the past 24 hours to $42,701 at 3:56 PM ET, according to The Block’s pricing page.
Bitcoin prices rose slightly after the US Federal Reserve (Fed) decided to keep interest rates stable. Image: Block.
James Butterfill, head of research at CoinShares, suggested that Bitcoin will become more responsive to interest rate decisions as financial institutions increasingly participate in the market through several spot Bitcoin ETFs.
“Bitcoin’s price has rebalanced in line with futures market interest rate expectations, suggesting that Bitcoin will become more responsive to interest rate sensitive macro data such as payrolls and CPI, especially as interest surrounding ETFs declines,” Butterfill told The Block. He said.
(Updated with Bitcoin price data.)
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