Bitcoin Price Stable After Fed Keeps Rates Unchanged

Bitcoin's price remained relatively stable following the Federal Reserve's decision to maintain interest rates within the 4.25% to 4.5% range. This decision, which was widely anticipated, did not elicit a significant reaction from the cryptocurrency market. The Fed's statement highlighted elevated inflation and uncertainty surrounding the economic outlook, which influenced their decision to keep rates unchanged. This move was expected by over 98% of the market participants, as indicated by the volume on Polymarket betting on no change in rates.

The Fed's decision to maintain rates reflects a cautious approach, with policymakers acknowledging higher inflation and lower economic growth. The market's focus now shifts to Chairman Jerome Powell's upcoming speech for any indications of future policy changes. The stability in Bitcoin and Ethereum prices suggests that the cryptocurrency market is resilient to short-term policy decisions, with traders closely monitoring the Fed's dot plot for insights into future rate movements.

Bitcoin's price ticked up slightly by 0.42% to $104,364.49, trading between $103,646.41 and $105,581.85. However, the weekly outlook remains bearish, with BTC still down 4.25% from seven days ago. Market capitalization edged higher by 0.61% to $2.07 trillion, while BTC dominance crept up to 64.90%, indicating that bitcoin held up slightly better than most altcoins. In derivatives markets, futures open interest fell by 2.54% to $69.13 billion, pointing to waning confidence among leveraged traders. Total liquidations reached $46.36 million, with roughly $30.08 million from long positions and $16.28 million from shorts.

Despite the geopolitical tensions and surging liquidations, Bitcoin and Ethereum held steady at approximately $104,200 and $2,500, respectively. The Fed's decision to maintain rates reflects a cautious approach, with policymakers acknowledging higher inflation and lower economic growth. The market's focus now shifts to Powell's upcoming speech for any indications of future policy changes. The stability in Bitcoin and Ethereum prices suggests that the cryptocurrency market is resilient to short-term policy decisions, with traders closely monitoring the Fed's dot plot for insights into future rate movements.