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Bitcoin Surges to $100K as Fed Maintains Steady Rates and Powell Cautiously Discusses Future Cuts

Bitcoin, economic outlook, Federal Reserve, Inflation, interest rates, Jerome Powell, monetary policy

The Federal Reserve has decided to keep interest rates steady at 4.25% to 4.50%, with Chairman Jerome Powell indicating that future changes will depend on data related to the economy and inflation. Following this announcement, Bitcoin saw a slight dip of 1%, trading just under $102,000, remaining above the $100,000 mark. Earlier in the week, Bitcoin briefly dropped below that level due to Market reactions to China’s AI launch, which impacted global values significantly. The Fed’s statement suggests a solid economic outlook, without an immediate need for rate cuts. Market expectations indicate a possible 25-basis-point cut in the upcoming months, reflecting ongoing speculation about monetary policy adjustments.



The Federal Reserve has announced its decision to keep interest rates steady, maintaining them between 4.25% and 4.50%. This move comes as Chairman Jerome Powell avoided making strong commitments regarding potential future rate cuts and dropped previous language that suggested progress in reducing inflation.

In the wake of the announcement, Bitcoin saw a slight decline of 1%. However, it remains resilient, trading just below $102,000 and staying above the significant $100,000 mark. Earlier in the week, Bitcoin briefly dipped below this threshold following the launch of China’s DeepSeek AI, which reportedly erased $1 trillion from the global Market.

The Fed’s statement highlighted calm economic growth and stable low unemployment, which suggests that there is no immediate need for rate cuts. The Market is still keeping an eye on future possibilities, with the CME FedWatch tool indicating a 46.5% chance for a rate cut of 25 basis points in June and a 43.5% chance for July.

As markets adjust, they are pricing in a lower probability of more than two rate cuts in 2025, reflecting cautious optimism in the face of ongoing economic fluctuations.

For those looking to understand the current economic landscape and its impacts on cryptocurrencies like Bitcoin, it’s a critical time to stay informed as data continues to unfold.

Key Takeaways:
– The Fed maintains interest rates at 4.25%-4.50%.
– Bitcoin trades below $102,000 but stays above $100,000.
– The Fed hints at cautious inflation progress without immediate rate cuts.

Share this article on social media platforms to keep your friends and followers updated on these important economic developments.

What is happening with Bitcoin and the Fed’s interest rates?

Recently, Bitcoin’s value has hit $100,000 as the Federal Reserve decided to keep interest rates steady. This news has made many investors optimistic, hoping for future gains.

Why did the Fed decide to keep the rates steady?

The Federal Reserve is trying to balance the economy. By keeping rates steady, they hope to control inflation while not slowing down economic growth too much.

What does Jerome Powell think about future rate cuts?

Jerome Powell, the Fed Chairman, is cautious about cutting rates. He wants to see how the economy responds to the current rate before making any changes.

How does this affect Bitcoin investors?

With stable interest rates, some investors may feel more confident putting their money into Bitcoin. A high price like $100,000 might attract new buyers, hoping to benefit from further price increases.

Should investors be worried about a rate hike in the future?

While no one can predict the future, a rate hike could affect Bitcoin prices. Investors should keep an eye on economic news and be ready to adjust their strategies accordingly.

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