Bitcoin, the leading cryptocurrency, shows stability, remaining above the $104,000 mark after the U.S. Federal Reserve opted to keep the benchmark interest rate unchanged for the fourth consecutive time.
Fed's Decision
The U.S. Federal Reserve has decided to maintain the interest rate, a move widely anticipated by the market. As a result, Bitcoin is experiencing low volatility.
Forecasts and Opinions
According to the Fed's median forecast, two interest rate cuts totaling 50 basis points are expected this year. However, there is a wide dispersion of views, with some members projecting no cuts. Futures traders are pricing in a 71% chance of a rate cut in September.
Economic State
The Fed has revised its GDP growth estimate for 2025, anticipating only a 1.4% growth. Furthermore, U.S. inflation is projected to be around 3%, significantly above the Fed's 2% target. Analyst Joseph Brusuelas remarked that the Fed's recent decisions could indicate stagflation: "The Federal Reserve's June policy decision and summary of economic projections strongly imply the Fed expects economic growth to stagnate while inflation and unemployment head higher during the remainder of 2025."
The Fed's decision to keep interest rates unchanged reflects the current economic instability. Bitcoin, remaining above the $104,000 level, may continue to respond to changes in economic policy.
