$BTC FOMCMeeting Fed Holds Rates Steady

The Federal Reserve kept interest rates unchanged during its recent meeting.

This move was widely anticipated, with markets pricing in a major chance of no change.

No Major Rate Cuts Expected

Despite previous rate cuts, the Fed signaled only two more cuts in 2025, less than many had hoped.

This cautious approach has led some to question the extent of future monetary easing.

Crypto Market Reacts Positively

Bitcoin's price surged following the Fed's decision to slow its balance sheet runoff, increasing market liquidity. Increased liquidity generally results in trades confidence and demand it pumps the crypto market.

Trading Activity Spikes

Major exchanges like Binance and Coinbase saw a huge increase in trading volume, with millions dollar BTC traded within the first hour post announcement.

Active Bitcoin addresses also rose by 20%, indicating heightened investor interest.

Powell's Stance on Crypto

Fed Chair Jerome Powell reiterated that the Fed cannot hold Bitcoin due to legal restrictions.

He emphasized that cryptocurrencies like Bitcoin are too volatile to serve as stable stores of value, contrasting them with central bank digital currencies.

What's Next?

Investors are now looking ahead, with some anticipating further rate cuts and others questioning the Fed's cautious approach.