The world eagerly anticipated the CPI and interest rate decisions from the United States today. Despite widespread expectations in the market, the United States Federal Reserve chose to maintain the interest rate, which has a significant impact on Bitcoin (BTC) and risky assets, unchanged.
Bitcoin Price and Fed’s Stance
Following the Federal Open Market Committee (FOMC) meeting, it was disclosed that US FED officials opted to keep the interest rates steady between 5.25% and 5.50%. This decision stood in contrast to the 25% interest rate cuts by G7 countries in recent days, reaffirming the FED’s stance. Stay updated with the latest technology news by accessing NEWSLINKER.
Reflecting on the previous week, the Bank of Canada made a crucial decision to reduce the interest rate by 0.25% due to stagnant inflation. Following suit, the European Central Bank (ECB) also decreased its interest rate by 0.25%, signaling a positive outlook. Furthermore, the Central Bank of Denmark took a significant step by lowering the interest rate last Thursday to support the local currency.
While interest rates were being slashed globally, the fluctuating price of Bitcoin from $66,190 to $70,100 was causing unease among investors. Notably, BTC’s price experienced a visible drop following 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 past 24 hours, compared to its value above $69,000 before the announcement.
In addition to price fluctuations, the 24-hour trading volume decreased by 7.60% to $34 billion, indicating reduced volatility. The lowest and highest values for BTC in the last 24 hours were $66,902 and $69,977, respectively. Expectations were high that the Federal Reserve’s announcement would push BTC’s price back to the $70,000 level for another resistance test, but this did not materialize.
Market’s Future
Historically, Bitcoin’s price has mirrored overall market trends. It is believed that developments in the stock market could influence BTC, with ETFs potentially playing a pivotal role in this dynamic. While market certainty remains elusive, Bitcoin investors are strategizing their positions, with spot BTC ETFs potentially shaping the landscape. Following a 19-day period of ETF inflows, there was a subsequent 2-day outflow led by Grayscale Investments, underscoring the ongoing uncertainties in the cryptocurrency realm.
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Disclaimer: The information provided in this article is not intended as investment advice. Investors should be mindful of the high volatility and associated risks of cryptocurrencies, conducting thorough research before making investment decisions.
