On Wednesday, Bitcoin’s price stabilized near $89,000 following the Federal Reserve’s decision to pause interest rate cuts. The Fed maintained its benchmark rate between 3.5% and 3.75%, halting a three-month streak of 25 basis point reductions. Fed Chairman Jerome Powell adopted a neutral tone regarding inflation and the labor market during his press conference. Bitcoin initially traded above $90,000 but later settled around $89,500 as Powell spoke.
The Federal Open Market Committee voted 10-2 to hold rates steady, with Governors Stephen Muirin and Christopher Waller dissenting in favor of a 0.25% cut. Muirin’s term is ending soon, and he has supported deeper rate reductions, while Waller, a potential Powell successor, also opposed the decision. Powell noted the economy is growing at a solid pace and inflation remains somewhat elevated. He described the current policy as “roughly neutral,” clarifying that rates are neither too tight nor too loose.
This Fed strategy has helped stabilize Bitcoin’s price, as investors do not anticipate further rate cuts but also do not expect tighter policy. Speculation continues about Powell’s successor, with the U.S. Treasury Secretary indicating the president may soon appoint a new Fed chair. These developments are critical for the crypto market, as changes in Fed policy significantly impact Bitcoin and other cryptocurrencies. Investors remain watchful for any major rate adjustments in the coming month.
Source: bitcoinmagazine
