Federal Reserve Holds Rates, Bitcoin Stable Above $105,000

Federal Reserve Chairman Jerome Powell has dismissed the possibility of interest rate cuts in the near future, citing ongoing inflation risks and economic uncertainty. Despite this, the crypto market has shown remarkable resilience, with Bitcoin continuing to trade above $105,000.

During his testimony to the U.S. Congress on June 24, Powell expressed concerns about the potential impact of Trump tariffs on inflation, which could drive up the cost of everyday items. He emphasized that the Federal Reserve is taking a cautious approach, closely monitoring economic developments before making any decisions on interest rate adjustments.

The Federal Reserve has kept its benchmark interest rate at 4.25%-4.50%, maintaining a data-dependent and cautious policy stance. This decision comes despite political pressure from President Trump, who has publicly criticized Powell and urged the Fed to cut rates to stimulate economic growth. Trump's criticism has been particularly vocal, with the President calling Powell a "stupid person" and accusing the Fed of hindering growth in sectors like housing.

Despite the lack of a dovish pivot from the Fed, major cryptocurrencies have exhibited impressive stability. Bitcoin has remained steady around the $105,000 mark, with the rate announcement having minimal impact on its price. Analysts suggest that while rate cuts have historically served as a bullish catalyst for digital assets, the current stable policy has led investors to adopt a more conservative, capital-conservation strategy.

The next move by the Federal Reserve is expected to influence crypto prices, with traders closely watching Powell's upcoming speeches. Any dovish signals, particularly hints at potential rate cuts, could drive Bitcoin above its current resistance levels. The market's focus is now on Powell's next public remarks, as investors anticipate any indications of a shift in monetary policy.