Fed Holds Rates, Bitcoin Surges 2% to $99,374

The Federal Reserve, during its FOMC meeting on May 8th, decided to keep the federal funds rate unchanged at 4.25%–4.50% for the third consecutive time. This decision was made to support economic stability and maintain the current interest rate environment. The Fed also reiterated its commitment to continue reducing its balance sheet, a move aimed at ensuring the stability of the financial system.

Following the Fed's announcement, the probability of a rate cut in June decreased to about 23.8%, as indicated by rate futures. This shift in expectations reflects the market's response to the Fed's decision to hold rates steady, suggesting that investors are now less optimistic about an imminent rate cut.

In the Asian trading session on the same day, Bitcoin (BTC) reached the $99,000 milestone for the first time in nearly three months. The price of BTC surged to $99,374, marking a daily gain of nearly 2%. This price movement was driven by investors' reaction to the Fed's decision, which was seen as neither overly hawkish nor dovish. The technical rebound in BTC's price came after a short-term pullback, indicating that the market is digesting the Fed's stance and adjusting accordingly.

According to a Bitunix analyst, risk assets received a short-term boost after the Fed stabilized the interest rate environment. However, uncertainty remains, and BTC is currently in a wait-and-see mode. The analyst suggests watching for psychological pressure around the $100,000 level and support around $94,000. Next week's CPI and PPI data, as well as the progress of the US-China trade negotiations, are key factors to monitor. The analyst also recommends diversifying into stablecoins or gold to hedge against macroeconomic and market volatility.