BTC showed increased volatility ahead of the announcement.
Following a series of interest rate reductions that started in September, the United States Federal Reserve has shifted its approach and decided to maintain rates between 3.5% and 3.75%.
Although this outcome was largely anticipated despite declining inflation in the US, it has not affected Bitcoin’s price, at least for now.
The central bank’s statement noted that the “unemployment rate has shown some signs of stabilization,” while also cautioning that “inflation remains somewhat elevated.”
This observation has sparked debate, especially given that the Consumer Price Index data for November and December came in lower than expected. During that period, the President frequently encouraged Fed Chair Jerome Powell to continue cutting rates.
Despite this, the Fed emphasized its long-term commitment to achieving a healthier 2 percent inflation rate, a level not seen in years.
The statement added that “uncertainty about the economic outlook remains elevated” and that the Committee is closely monitoring risks related to both aspects of its dual mandate.
Earlier today, Bitcoin’s price saw pronounced swings before the Fed’s announcement. It briefly exceeded $90,000 multiple times before falling to $88,750. Since the decision, however, it has remained stable above $89,000.
