Bitcoin has once again reached $98,000 after the US Federal Reserve’s decision to keep interest rates unchanged. This happened for the first time in almost three months and became a notable event in the financial market.
The Fed’s Decision and Pressure from Trump
The Fed kept rates at 4.25-4.50% despite pressure from US President Donald Trump. The head of state expressed dissatisfaction with the slow rate cuts and even threatened to fire Fed Chairman Jerome Powell.
Reasons for the Fed’s Decision
The Federal Reserve explained its decision by rising unemployment and inflation risks. Powell noted that inflation had fallen, but was still above the long-term target of 2%. Surveys showed a decline in economic sentiment due to Trump’s trade policy.
Economic Stability and Market Expectations
Powell said that the economy remains stable despite the uncertainty. The futures market was expecting a minimal chance of a rate cut. The market is forecasting a rate cut to 3.6% by the end of 2025.
Market reaction to the Fed’s decision
After Powell’s speech, Bitcoin initially fell slightly to $95,866. However, the price returned to $98,000 shortly thereafter. The crypto fear and greed index returned to “Greed” territory. Spot Bitcoin ETFs have seen inflows of almost $4.41 billion since March 26.
Forecast for the future
Economist Timothy Peterson warned that the Fed’s hold on rates could lead to a market downturn and a Bitcoin drop to $70,000. The forecast is based on Powell’s statement about the need to wait for greater clarity on the economic situation.
The cryptocurrency market situation remains dynamic, and investors continue to monitor the Fed’s decisions and other economic factors that could impact the price of Bitcoin and other cryptocurrencies.
