Fed holds rates steady, bitcoin tries to reclaim $100,000 level
Quick Take The U.S. Federal Reserve left interest rates unchanged Wednesday at a range between 4.25% and 4.50%. The committee will continue reducing its holdings of Treasury securities and agency debt and agency mortgage‑backed securities.
The Federal Open Market Committee (FOMC) maintained the benchmark federal funds rate at the current range between 4.25% and 4.50%.
"Although swings in net exports have affected the data, recent indicators suggest that economic activity has continued to expand at a solid pace," the U.S. Federal Reserve said Wednesday in a statement. "The unemployment rate has stabilized at a low level in recent months, and labor market conditions remain solid. Inflation remains somewhat elevated."
The Fed seeks to achieve maximum employment and inflation at the rate of 2% over the longer run.
"Uncertainty about the economic outlook has increased further," the statement continued. "The Committee is attentive to the risks to both sides of its dual mandate and judges that the risks of higher unemployment and higher inflation have risen."
The committee said Wednesday it will continue reducing its holdings of Treasury securities, agency debt, and agency mortgage‑backed securities.
At its last meeting in March, the FOMC said it would slow the pace of the decline of its securities holdings by reducing the monthly redemption cap on Treasury securities from $25 billion to $5 billion and maintaining the monthly redemption cap on agency debt and agency mortgage-backed securities at $35 billion.
Fed Chair Jerome Powell is scheduled to hold a press conference at 2:30 p.m. ET.
The price of bitcoin traded around $96,400 at publication time, up 1.9% over the past 24 hours according to The Block's price data . The world's largest crypto had traded up near the $97,300 level earlier in the day. Bitcoin dropped below the $100,000 level in late February and has yet to reclaim it.
"It’s a positioning regime defined more by caution than conviction, with the derivatives market reflecting structural trades rather than directional aggression," said Dr. Kirill Kretov, senior automation expert at CoinPanel, to The Block earlier Wednesday. "There’s little sign of hedging downside, nor are traders leaning too far into bullish risk-repricing."
Meanwhile, K33 analysts declared a " hold in May and stay " mantra for the bitcoin market, saying that 2025 will be different from prior summer lulls.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
You may also like
Cobie: Long-term trading
Crypto Twitter doesn't want to hear "get rich in ten years" stories. But that might actually be the only truly viable way.

The central bank sets a major tone on stablecoins for the first time—where will the market go from here?
This statement will not directly affect the Hong Kong stablecoin market, but it will have an indirect impact, as mainland institutions will enter the Hong Kong stablecoin market more cautiously and low-key.

Charlie Munger's Final Years: Bold Investments at 99, Supporting Young Neighbors to Build a Real Estate Empire
A few days before his death, Munger asked his family to leave the hospital room so he could make one last call to Buffett. The two legendary partners then bid their final farewell.

Stacks Nakamoto Upgrade
STX has never missed out on market speculation surrounding the BTC ecosystem, but previous hype was more like "castles in the air" without a solid foundation. After the Nakamoto upgrade, Stacks will provide the market with higher expectations through improved performance and sBTC.

