Fed "maintains interest rates" with rates: How do Bitcoin and the cryptocurrency market respond?
The Federal Reserve of the United States (Fed) has decided to keep interest rates unchanged at 4.25% to 4.5% in its first policy meeting of 2025, despite pressure from President Donald Trump to cut interest rates. This decision comes after three consecutive rate cuts last year.
Impact on the cryptocurrency market
The cryptocurrency market has reacted steadily to this decision, as it had anticipated the Fed's decision to maintain interest rates. Fed Chair Jerome Powell emphasized that the committee will be cautious in adjusting interest rates and will not rush to implement cuts.
Data from CoinMarketCap shows that the price of Bitcoin has slightly decreased in recent minutes, from a peak of $102,900 to a low of $101,700. The attention of the cryptocurrency market is now focused on the upcoming FOMC meetings and Powell's comments on the possibility of interest rate cuts in the future. Any developments or surprises could be the main driver for Bitcoin's price volatility.
Additionally, President Trump's economic policies, including tariffs on imports and the expulsion of illegal immigrants, could affect inflation and create volatility in the financial markets, including the cryptocurrency market.
Overall, the Fed's decision and the economic policies of the current administration will continue to impact the cryptocurrency market in the coming time.
