The global community eagerly anticipated the CPI and interest rate decisions from the United States today. Contrary to expectations, the United States Federal Reserve chose to maintain the interest rate, which has a significant impact on Bitcoin (BTC) and other risky assets.
Bitcoin Price and Federal Reserve’s Decision
Following the Federal Open Market Committee (FOMC) meeting, it was revealed that US FED officials opted to keep the interest rates steady at 5.25% to 5.50%. This decision stood in contrast to the recent 25% interest rate cuts by G7 nations, reaffirming the Federal Reserve’s stance. For the latest technology news, visit NEWSLINKER.
Looking back at the previous week, the Bank of Canada made a crucial decision to lower interest rates by 0.25% due to stagnant inflation. Following Canada’s move, the European Central Bank (ECB) also reduced interest rates by 0.25%, signaling a positive outlook. Furthermore, the Central Bank of Denmark took steps to cut interest rates to support the local currency.
Amidst global interest rate adjustments, Bitcoin experienced price fluctuations from $66,190 to $70,100, causing unease among investors. Notably, BTC’s price dipped visibly after the Federal Reserve’s decision to maintain the interest rate unchanged. At the time of writing, BTC was priced at $68,200, marking a 1% increase in the last 24 hours, although it had surpassed $69,000 prior to the announcement.
In addition to price movements, the 24-hour trading volume decreased by 7.60% to $34 billion, indicating reduced volatility. BTC’s lowest value in the past 24 hours was $66,902, while the highest was $69,977. Expectations of the Federal Reserve’s announcement pushing BTC’s price back to $70,000 and testing the resistance level did not materialize.
Market Outlook
Historically, Bitcoin’s price has mirrored overall market trends, suggesting that stock market movements could influence BTC as well. ETFs may play a crucial role in this dynamic. While market certainty remains uncertain, Bitcoin investors are strategizing their positions, with spot BTC ETFs potentially influencing the market. Following a 19-day inflow period in ETFs, a 2-day outflow led by Grayscale Investments occurred, underscoring ongoing uncertainties in the cryptocurrency realm.
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Disclaimer: The information provided in this article is not financial advice. Investors should be aware of the high volatility and risks associated with cryptocurrencies and conduct thorough research before making investment decisions.
