Bitcoin BTC
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Prices remained relatively stable on Wednesday after the U.S. Federal Reserve maintained interest rates at the current level on Wednesday.
The Federal Open Market Committee left the federal funds rate at its current range of 5.25% to 5.50%, as most analysts had predicted. This measure marks the first interest rate freeze in 2024.
“The committee decided to maintain the federal funds rate target range at 5.25% to 5.50% to support the target,” the central bank said in a statement.
On the possibility of a rate cut, the central bank said: “The committee does not anticipate that it would be appropriate to reduce the target range until greater confidence is gained that inflation will continue to move towards 2%.”
The economic outlook is uncertain.
“The economic outlook remains uncertain,” the FOMC said in a statement, adding, “The Committee is paying close attention to inflation risks.”
However, the statement said “job growth remains strong, unemployment remains low, and inflation, although moderating over the past year, remains high.”
“The Committee seeks to achieve maximum employment and inflation at a rate of 2% over the long term. The Committee believes that this better balances the risks to achieving the employment and inflation targets.” FOMC statement added.
According to the CME FedWatch Tool, markets expect at least one rate cut by the FOMC meeting on July 31, with interest rates expected to be about 50 to 100 basis points lower by the end of 2024.
The world’s largest cryptocurrency by market capitalization rose slightly over the past 24 hours to $64,564 at 2:16 PM ET, according to The Block’s pricing page.
Bitcoin was flat after the US Federal Reserve (Fed) decided to pause interest rates at current levels. Image: Block.
Despite the current quiet price action, Grayscale Research Managing Director Zach Pandl predicts future events that could support the Bitcoin price. “If rate cuts are still the base case, the outlook for cryptocurrencies remains favorable. A soft landing in the economy, Fed interest rate cuts, and a contentious presidential election will be a supportive macro backdrop for Bitcoin,” Pandl said. said. block.
Ruslan Lienkha, head of markets at YouHodler, suggested that the price of Bitcoin will continue its long-term upward trend, calling the latest correction a sign the digital asset could “take a breather” ahead of Federal Reserve Chairman Jerome Powell’s speech today. It is seen as “resting.”
“We could see price consolidation of $10,000 plus or minus $10,000 from current levels for some time before the next price hike hits an all-time high. So this is just another opportunity for long-term investors to accumulate long positions.” Lienkha told The Block.
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