The Fed Blinked — The Bitcoin Bull Run Return Is Now Inevitable
The post The Fed Blinked — The Bitcoin Bull Run Return Is Now Inevitable appeared on BitcoinEthereumNews.com.
Reason to trust Strict editorial policy that focuses on accuracy, relevance, and impartiality Created by industry experts and meticulously reviewed The highest standards in reporting and publishing Strict editorial policy that focuses on accuracy, relevance, and impartiality Morbi pretium leo et nisl aliquam mollis. Quisque arcu lorem, ultricies quis pellentesque nec, ullamcorper eu odio. Este artículo también está disponible en español. On Wednesday, the US Federal Reserve decided to leave its benchmark interest rate unchanged in the 4.25%–4.5% range – and Bitcoin reacted instantly. The pause, while widely anticipated, came with a slightly revised outlook that includes a slower timeline for future rate cuts and a notable adjustment to the central bank’s balance sheet reduction pace. According to the Federal Open Market Committee (FOMC) statement, the Fed’s “Dot Plot” now indicates only two 25 basis-point rate cuts for this year—fewer than many market participants expected in December. Policymakers stressed that while interest rates remain in restrictive territory, the timing of actual cuts hinges on the path of economic indicators, particularly inflation and employment. However, the latest statement no longer asserts that inflation and employment are “in balance,” reflecting the Committee’s growing concern about economic uncertainty. But perhaps the most significant pivot was the Fed’s announcement that it will slow the reduction of its bond holdings, commonly known as “quantitative tightening” (QT). Related Reading Beginning in April, the monthly runoff for government bonds will drop from $25 billion to $5 billion—a substantial downshift that many analysts consider a prelude to a more accommodative stance if economic or market conditions deteriorate. What This Means For Bitcoin Shortly after the Fed’s announcement, Bitcoin rallied roughly 4–5%, briefly surpassing the USD 86,000 level. Nik Bhatia—founder of The Bitcoin Layer and author of Bitcoin Age—took to his latest video update to dissect the decision’s implications.…
Filed under: News - @ March 20, 2025 8:23 pm