The post Bitcoin Price Fluctuates as Fed Keeps Interest Rates Steady: Analysis & Market Outlook appeared on BitcoinEthereumNews.com.

The global financial markets were eagerly awaiting the Consumer Price Index (CPI) figures and interest rate decisions from the U.S. Contrary to widespread market projections, the U.S. Federal Reserve decided to maintain the interest rate at its current level. This decision is noteworthy as it has significant implications for Bitcoin (BTC) and other high-risk assets. This article delves into the Federal Reserve’s decision to maintain interest rates, its impact on Bitcoin, and the broader financial market’s response. Why Did the Fed Maintain Rates? Following the Federal Open Market Committee (FOMC) meeting, it was announced that the Federal Reserve would keep interest rates in the range of 5.25% to 5.50%. This came as a surprise, especially following recent 25% interest rate cuts by several G7 countries. The Fed’s decision to hold off on rate reductions underscores its cautious approach as it closely monitors inflation trends and other economic indicators. Just last week, the Bank of Canada cut its rate by 0.25%, similar to the European Central Bank (ECB), which also opted for a 0.25% reduction due to positive economic outlooks. How Did Other Central Banks React? In reaction to global trends, Denmark’s central bank also slashed its interest rate last Thursday to support the local currency. The ripple effect of these global rate cuts saw Bitcoin’s value swinging within a range of $66,190 to $70,100, signaling heightened volatility. Post the Fed’s announcement, BTC’s price dipped temporarily but then rebounded slightly to $68,200. This 1% climb over the past 24 hours contrasts with the pre-announcement price of over $69,000. Additionally, there was a noticeable decline in 24-hour trading volume by 7.60% to $34 billion, indicating a reduction in market activity and volatility. BTC’s lowest value in the last 24 hours was recorded at $66,902, while its peak was $69,977. Expectations that BTC…

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Filed under: News - @ June 13, 2024 1:16 am