Fed Holds Rates, Bitcoin Surges to $105K

The Federal Reserve, led by Chair Jerome Powell, has maintained interest rates at 4.25%-4.50%, a decision that has been positively received by the cryptocurrency market. Following the announcement, Bitcoin (BTC), Solana (SOL), and XRP have all experienced gains, while altcoins may face challenges without clear signs of future liquidity expansion.

Bitcoin's price has maintained its bullish momentum, reaching $105,000 after Powell's comments. The leading cryptocurrency initially dipped to $101,365 but recovered strongly, indicating market confidence in the Fed's decision. Powell's openness to crypto banking and Senator Cynthia Lummis' upcoming public hearings on the Strategic Bitcoin Reserve have further bolstered market sentiment.

Technical analysis suggests key resistance levels at $105,400 and $107,200 before a potential retest of $109,000. Market experts have noted that Trump's election victory has contributed to over 50% gains in Bitcoin's price since November. However, some analysts advocate for cautious optimism, as much of the optimism surrounding Trump's crypto stance may already be reflected in current prices.

The broader cryptocurrency market has shown similar strength, with Ethereum (ETH) rising 2% to $3,184 and Solana (SOL) gaining 4.1% to reach $239. These movements indicate a general uplift in market sentiment across the digital asset space. Support levels have been established at $104,400, $102,200, and $101,500, with additional support found at the 2025 VWAP of $99,900.

Some traders are preparing for potential deeper price corrections, with interest in buying opportunities around the $95,000 level, contingent on supporting technical indicators. The cryptocurrency's ability to maintain prices above the psychological $100,000 level over recent weeks has demonstrated market resilience, suggesting continued support for current price levels.

The Czech central bank's consideration of a $7 billion Bitcoin reserve has introduced an additional element of institutional interest. Central Bank Governor Aleš Michl's upcoming proposal could position the Czech Republic as the first Western central bank to hold digital assets in its reserves.