The whole world was awaiting the CPI and interest rate decisions from the United States today. Contrary to widespread market expectations, the United States Federal Reserve once again kept the interest rate, known to have a significant impact on Bitcoin (BTC) and risky assets, unchanged.
Bitcoin Price and Fed’s Stance
With the completion of the Federal Open Market Committee (FOMC), it was revealed that US FED officials kept the interest rates between 5.25% and 5.50%. This situation emerged despite the 25% interest rate cuts by G7 countries in recent days, showing once again that the FED did not make such a decision.
Looking back to last week, a critical decision was made by the Bank of Canada, which decided to cut the interest rate by 0.25% based on the view that inflation was not increasing. Following Canada’s step, the European Central Bank (ECB) also cut its interest rate by 0.25%, presenting an optimistic outlook.
Additionally, after a critical step by the Central Bank of Denmark, a decision was made last Thursday to cut the interest rate to support the local currency.
While interest rate cuts were happening worldwide, Bitcoin’s price fluctuations from $66,190 to $70,100 were making investors uneasy. On the Federal Reserve side, it was observed that BTC’s price visibly dropped after the interest rate was kept unchanged. As of the time of writing, BTC’s price was at $68,200, having risen by 1% in the last 24 hours, whereas it was above $69,000 before the announcement.
In addition to the price movement, the 24-hour trading volume also fell by 7.60% to $34 billion, highlighting the decreasing volatility. The lowest value for BTC in the last 24 hours was $66,902, while the highest value was $69,977. The expectation was that the Federal Reserve’s announcement could push BTC’s price back to the $70,000 level and test the resistance level again, but this did not materialize.
Market’s Future
It is known that Bitcoin’s price has generally paralleled overall market trends from past to present. It is thought that what happens in the stock market could also impact BTC, and ETFs could play a significant role in this.
While there is currently no certainty in the market, Bitcoin investors are trying to take positions, and spot BTC ETFs could also play a significant role in this regard. After a 19-day inflow period in ETFs, a 2-day period led by Grayscale Investments’ capital outflow occurred. Consequently, uncertainties in the cryptocurrency world continue to be a reality for now.
