The post Fed’s Rate Hold May Spark Further Bitcoin Price Fluctuations: Analysts appeared on BitcoinEthereumNews.com.

The U.S. Federal Reserve has decided to keep the benchmark federal rate at 5.25% to 5.50%. This stance essentially indicated that there would be very minimal rate decreases going forward. Federal Reserve Chairman Jerome Powell said that there has been a slight drop in inflation and that the rates will remain steady to ensure economic stability. This decision reflects a “cautious” stance amidst mixed economic signals. It also highlights the U.S. monetary authority’s focus on balancing inflation control with economic stability. How would this impact Bitcoin and the cryptocurrency prices in the near term? Bitfinex analysis weighs in. Bitcoin’s Path Amid Fed’s Rate Decision In a statement to CryptoPotato, Bitfinex analysts suggest that if the Fed opts to maintain the current rates, Bitcoin could see short-term fluctuations as the market reacts to the development. On the flip side, the overall trajectory may stay positive, particularly if the broader economic conditions continue to strengthen. It is also important to note that historical data shows that in three out of the last four Consumer Price Index (CPI) releases, Bitcoin reached local peaks. This evidenced potential volatility around such updates. Bitfinex analysts also added that the world’s largest digital asset might stabilize near current levels or see modest increases, buoyed by investor optimism about future rate cuts that are expected late in the year. They further stated, “Central banks around the world have already started to cut rates, which suggests a broader trend towards monetary easing. It seems clear that the Bank of England and the Federal Reserve will follow suit in the coming months. The global liquidity cycle indicates that money supply is likely to increase, which can support asset prices, including cryptocurrencies.” ETF Stability Expected The decision to maintain rates could bring stability to ETF flows, according to the crypto exchange.…

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Filed under: News - @ June 13, 2024 4:14 pm