The Federal Reserve remains committed to its interest rates amidst uncertainty posed by economic factors and tariff impacts.
Fed's Rate Hold and Tariff Concerns
The Federal Reserve has decided to keep interest rates unchanged at 4.25%-4.5% during its May 2025 meeting, reflecting a cautious approach amidst economic uncertainties.
Under the leadership of Jerome Powell, the central bank unanimously agreed to maintain its rates, as the risk of increased tariffs poses uncertainties for inflation, growth, and employment.
Powell stated: > "If the large increases in tariffs that have been announced are sustained, they're likely to generate a rise in inflation, a slowdown in economic growth, and an increase in unemployment" - Jerome Powell, Chair, Federal Reserve.
Bitcoin's Performance Amid Rate Speculation
Amid expectations of potential rate cuts, Bitcoin is holding above $105,000. It is currently priced at $105,299.11, with a market capitalization of $2.09 trillion and a 63.07% market dominance.
In the last 24 hours, its trading volume reached $47.01 billion, marking a 20.93% change. While the price has shown a 0.10% decrease over 24 hours, it has increased by 9.74% over the last 30 days.
Economic Outlook and Impact on Cryptocurrency Market
Research suggests that the current stability of interest rates may ease pressure on cryptocurrency markets if economic downturns intensify. Technological advancements and regulatory changes will also be pivotal as digital assets navigate the shifting financial landscape.
The Federal Reserve's decision to maintain rates at their current level reflects a cautious approach to economic uncertainty. The analysis of cryptocurrency performance indicates the potential impact of these decisions on the activity and pricing of digital assets.
