Bitcoin Surges to $103K During Powell's Speech, Defying Market Volatility

Bitcoin's price surged to $103,997 during Federal Reserve Chair Jerome Powell's speech, marking a significant rebound for the cryptocurrency. The digital asset briefly touched the $103,000 mark on Bitstamp just before the FED interest rate announcement, demonstrating its resilience amidst market volatility.

The Federal Reserve maintained interest rates between 4.25% and 4.50% on Wednesday, with Powell avoiding commitments on future cuts while removing prior language on inflation progress. Bitcoin declined 1% following the Fed's announcement but remained above $100K, currently trading just below $102K. The digital asset had briefly dipped below $100,000 earlier in the week after China's DeepSeek AI launch erased $1 trillion in global market value.

The central bank noted solid economic growth and stable low unemployment levels, suggesting no immediate need for rate cuts. The meeting marks the first Federal Open Market Committee gathering under Donald Trump's second term, with the president advocating for lower borrowing costs. Trump's administration's proposed 25% tariffs on Mexico and Canada, along with a temporarily blocked federal spending freeze, complicate the economic outlook.

Market expectations for monetary easing remain active, with the CME FedWatch tool indicating a 46.5% probability of a 25-basis-point rate cut in June and a 43.5% chance in July. Markets are pricing in less than a 40% probability of additional cuts, suggesting expectations for at most two rate cuts in 2025.