Here's a summary of the recent events regarding Bitcoin (BTC) and the Federal Reserve's decision:
- **Federal Reserve Decision:**
- The United States Federal Reserve has chosen to leave interest rates unchanged, disappointing hopes for a potential rate cut in March.
- During the Federal Open Markets Committee (FOMC) press conference on January 31, the Fed stated that interest rates would stay at 5.25%-5.50%.
- The decision was accompanied by the Fed's indication that it would need "greater confidence" in addressing inflation pressures before considering rate cuts.
- **Bitcoin Price Reaction:**
- Bitcoin's price fell a little over 2.2% following the FOMC announcement.
- The current price of Bitcoin is approximately $42,590, reflecting a 7% increase for the week.
- **Fed's Economic Outlook:**
- The FOMC emphasized a "solid" economic expansion, citing growth in jobs and a decrease in the unemployment rate as evidence of economic strength.
- The Fed remains cautious about inflation risks and expressed uncertainty about the economic outlook.
- **Market Analyst's View:**
- According to IG Markets analyst Tony Sycamore, Bitcoin is trading lower due to a "deterioration in risk sentiment" resulting from the Fed's hawkish stance.
- Sycamore expects a potential rally toward $45,000 before a return to the mid-$30,000 range, followed by a resumption of the general uptrend for Bitcoin.
