Bitcoin jumps to $ 105,000 like Fed Fears Fade

Bitcoin (BTC) rose past $ 105,000 on Wednesday when the investor sentiment shifted after the Federal Reserve decision to pause his interest rates.

The world’s largest crypto, which initially fell to $ 101,800 after the announcementQuickly recovered and marked the highest level in three days.

During the meeting of the Federal Open Market Committee, the Fed left its benchmark interest unchanged, so that it kept it within the target range of 4.25% to 4.50%.

Since the election victory of President Donald Trump in November, Bitcoin has won More than 50%, partly fed by expectations of more crypto-friendly policy under his administration.

While the Federal Reserve continues to follow the economic data, traders remain carefully but optimistic about the Bitcoin process.

“Immediate growth, as we have seen in earlier bull cycles, may not follow much of optimism around Trump’s attitude in Crypto, is already priced Decrypt.

The interest break is after three consecutive rate reductions since September, which cut The federal funds focus with 100 basic points.

FED chairman Jerome Powell said during a press conference after the meeting that constant economic strength and persistent inflation influenced the rates to keep the rates stable.

Powell noted that inflation has decreased considerably compared to the 2022 peak of 9.1%, it remains 2.9%annually, which means that further rate adjustments are uncertain.

The Fed chair’s comments initially pushed Bitcoin and shares higher, with BTC that crossed $ 103,000 before he continued.

Traditional markets showed a mixed response, in which the Nasdaq dropped 1.1% and the S&P 500 fell by 0.9%. Gold remained in question and kept stable above $ 2,750 in early Asian trade on Thursday.

Powell, when asked about digital assets, stated that American banks are free to serve crypto customers as long as they manage associated risks.

The FED chairman also hinted to the need for clearer regulations of the congress, which considered many industry participants a positive development.

The wider cryptomarkt responded positively to the FED decision, where Ethereum (ETH) and Solana (SOL) reach trade in narrow. ETH has risen by 2% to $ 3,184, while SOL has won 4.1% to $ 239, according to data from Coetecko.

Despite recent profits, some analysts warn that the Bitcoin rally can experience resistance.

The world’s largest crypto briefly reached a record of $ 109,241 for President Trump inauguration In January but has since been withdrawn.

“Although some people believe that the cryptomarkt will get considerable attention from the new administration, it is important to temper the price expectations,” said Chen.

Published by Sebastian Sinclair