Summary
Bitcoin’s price dipped after the U.S. Federal Reserve decided to keep interest rates at their current level. The Federal Open Market Committee held the benchmark federal funds rate between 5.25% and 5.50%, marking the first rate pause of 2024. The Fed stated that economic activity has been expanding at a solid pace, but inflation remains elevated. Bitcoin fell 2.2% to $42,701 following the announcement. CoinShares Head of Research James Butterfill suggested that as financial institutions participate in the market through bitcoin ETFs, bitcoin will become more responsive to interest rate decisions.
Key Points
1. Bitcoin’s price dipped after the U.S. Federal Reserve kept interest rates unchanged.
2. The Federal Open Market Committee maintained the benchmark federal funds rate at 5.25%-5.50%, marking the first rate pause of 2024.
3. Inflation has eased but remains elevated, and the Federal Reserve does not expect to reduce the target range until it is confident in sustainable inflation movement.