Bitcoin rose above $85,000 following the Fed's decision to keep interest rates at 4.25%-4.50%.
Fed Decision and Bitcoin's Rise
The Federal Open Market Committee (FOMC) decided to maintain interest rates at 4.25%-4.50% in its recent meeting. This led to a 4.39% rise in Bitcoin's price over the last 24 hours, pushing its value above $85,000.
Market Reaction and Inflation
General financial markets also reacted positively to the Fed's decision, with the Nasdaq, S&P 500, and Dow Jones all gaining over 1%. Fed Chairman Jerome Powell stated that tariff-related price increases were expected to be temporary, with recession risks remaining low.
Expert Opinions and Bitcoin's Future
Despite initial market optimism, some analysts remain cautious. Economist Mohamed A. El-Erian expressed concerns that the use of the term 'temporary' could remind of past policy mistakes. Meanwhile, gold prices continued their upward trend, surpassing $3,050, as Ritholtz Wealth Management's chief market strategist Callie Cox suggests the Fed is reluctant to quickly ease monetary policy.
Market optimism following the Fed's decision supports Bitcoin's positive price trajectory, but experts offer cautious evaluations regarding the economy's long-term prospects.
