Summary
TLDR: The Federal Reserve announced it will keep interest rates the same and plans to slash rates later this year. Bitcoin’s price has remained flat, currently at $64,250. The Fed is monitoring inflation risks closely. Stocks rose after the Fed’s announcement. Fluctuations in rates may only create short-term movements with Bitcoin as traders adjust market sentiment.
Key Points
1. The Federal Reserve announced that it would keep interest rates as they are and maintain its plan to slash rates later this year, with three quarter-percentage point cuts expected by the end of the year.
2. The price of Bitcoin has remained relatively flat since the announcement, standing at $64,250 according to CoinGecko, down 1% over the last 24 hours and 12% over the past week from its all-time high.
3. Investors were closely watching the Fed’s response to higher than expected inflation data from February, as “risk-on” assets like Bitcoin and equities tend to experience sell-offs when inflation is high and the Fed signals a tightening of monetary policy.