Federal Reserve Holds Interest Rates, Bitcoin Price Rises
The U.S. Federal Reserve decided to keep interest rates unchanged, causing Bitcoin’s price to increase by nearly 3%. This move was in line with analysts’ predictions and marked the fourth rate pause of the year. The benchmark federal funds rate will remain at its current range of 5.25%-5.50%. The central bank acknowledged that tighter financial and credit conditions could impact economic activity, hiring, and inflation. While economic growth has slowed from the third quarter’s strong pace, job gains remain steady and unemployment remains low.
Bitcoin’s Recent Performance
Over the past 24 hours, Bitcoin, the largest cryptocurrency by market capitalization, saw a 3% increase in price. It reached $42,428 at 2:00 p.m. in New York after pulling back from its yearly high of over $44,300 in early December. The global cryptocurrency market cap also experienced a 1.2% increase over the last 24 hours, reaching $1.65 trillion.
Optimistic Market Reaction
The Federal Reserve’s decision had a positive impact on wider markets, leading to gains in major stock indices. The Nasdaq increased by 0.6%, the S&P 500 gained 0.6%, and the Dow Jones Industrial Average rose by 0.5%.
About the Author
Brian McGleenon is a UK-based markets reporter for The Block with experience in financial journalism and production for various news outlets.
Hot Take: Federal Reserve Decision Boosts Bitcoin and Wider Markets
The U.S. Federal Reserve’s decision to maintain interest rates at their current level has sparked optimism in both the cryptocurrency market and wider markets. Bitcoin experienced a 3% increase in price, reaching $42,428, while the global cryptocurrency market cap rose by 1.2%. Major stock indices also saw gains, with the Nasdaq, S&P 500, and Dow Jones Industrial Average all in positive territory. This decision reflects the Federal Reserve’s concerns about tightening financial conditions impacting economic activity. Despite a slowdown in growth, job gains remain steady and unemployment remains low. Overall, this development signals positive momentum for Bitcoin and the broader market.
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