The Fed has decided to keep rates steady at 4.25-4.5% after holding its first meeting of 2025. The decision was unanimous.
This is the first pause initiated by the Fed after three rate cuts in a row.
As reported by U.Today, the decision was widely expected by market participants.
Bitcoin is currently trading above $102,000 on the Bitstamp exchange following the latest rate decision, dipping by a mere 0.2%.
In December, Bitcoin experienced a significant correction after the Fed indicated that it would scale back easing the following year.
Alex DovbnyaThe Fed was widely predicted to implement a rate cut in January due to the relative stickiness of inflation.
The Federal Open Market Committee (FOMC) has stated that inflation remains "somewhat elevated," which indicates that hawks are likely gaining sway.
Traders now expect the Fed to resume cutting rates in June following the latest FOMC statement. This might not bode well for risk assets of the likes of Bitcoin.
Dan Burgin
Vladislav Sopov