Bitcoin‘s price experienced a bounce after days of downtrend, following the U.S. Federal Reserve’s decision to maintain interest rates at their current level. As anticipated by analysts, the Federal Open Market Committee (FOMC) chose to keep the benchmark federal funds rate within the range of 5.25% to 5.50%, marking the first pause in rate adjustments in 2024.
The central bank affirmed its commitment to maintaining the target range for the federal funds rate, citing its goals and the need for greater confidence in sustainable inflation movement before considering a rate reduction.
During the FOMC, the Federal Reserve recognized the strength of job gains and the low unemployment rate, although it acknowledged that inflation, while eased over the past year, remained elevated. The committee aims to achieve maximum employment and a 2% inflation rate in the long run. Market expectations, as indicated by the CME FedWatch Tool, now anticipate at least one rate cut by the FOMC meeting on July 31, with rates potentially 50 to 100 basis points lower by the end of 2024.
Following the FOMC meeting, Bitcoin (BTC) gained 7.7% over the past 24 hours, reaching $67,700. Despite surpassing previous all-time highs, BTC fell by 7.2% over the past week, after outflows from spot Bitcoin ETFs and higher-than-expected inflation data pushed the price down to $61,000.