The U.S. Federal Reserve's decision to maintain the benchmark federal rate could lead to short-term fluctuations in Bitcoin prices, according to Bitfinex analysts. However, the overall trajectory may remain positive, especially if broader economic conditions continue to improve. Historical data shows that Bitcoin reached local peaks in three out of the last four Consumer Price Index (CPI) releases, indicating potential volatility around such updates.
Bitfinex analysts also suggest that Bitcoin might stabilize or see modest increases, driven by investor optimism about future rate cuts expected later this year. They noted that central banks worldwide have begun to cut rates, indicating a trend towards monetary easing which could support asset prices, including cryptocurrencies.
The rate decision could also bring stability to ETF flows, as investors await clearer signals from the Fed's future policy direction. Spot Bitcoin ETFs may see steady inflows, albeit less pronounced compared to a rate-cut scenario. The introduction of spot Ether ETFs could attract significant interest, potentially diversifying investments across both Bitcoin and Ethereum ETFs. As of now, Bitcoin's price hovers around $67,000, with retail investors on Binance holding net long positions in anticipation of a rebound.