Bitcoin rises 2% as Fed holds rates steady near 4650

Bitcoin’s (CRYPTO:BTC) price increased by 2 percent following the Federal Reserve’s decision to maintain interest rates in the 4.25 to 4.5 percent range on Wednesday.

The Fed cited ongoing concerns over elevated inflation levels as the reason for keeping rates unchanged.

Alongside Bitcoin’s rise, the broader cryptocurrency market grew by 0.95 percent, reaching a total market capitalisation of $2.98 trillion, according to Coinmarketcap.

Traditional stock indices also showed gains, with the SP 500 up 0.43 percent, Nasdaq rising 0.27 percent, and the Dow Jones Industrial Average increasing by 0.70 percent.

Economists had anticipated the Fed’s decision amid public pressure from former President Donald Trump, who criticised Fed Chair Jerome Powell for not cutting rates and threatened to remove him.

Powell, however, remained firm in his stance to hold rates steady.

“With the Fed hitting pause, it’s clear there’s no quick fix for the economy, and that uncertainty is likely to stick around,” commented Pauline Shangett, chief marketing officer at crypto exchange Changenow.

“That’s exactly when people start turning to assets that aren’t tied to political decisions,” she added.

Trading volume surged by 208.93 percent to $71.54 billion, with Bitcoin’s market capitalisation rising to $1.91 trillion.

Bitcoin’s dominance in the crypto market increased by 0.44 percentage points to 65.45 percent, signaling stronger investor preference for Bitcoin over alternative cryptocurrencies.

In the derivatives market, Bitcoin futures open interest grew by 1.93 percent to $64.37 billion, indicating increased activity from leveraged traders.

Data from Coinglass showed total liquidations of $273,240 in the past 24 hours, mostly from short positions, suggesting bearish traders underestimated the market’s strength.

At the time of reporting, the Bitcoin (BTC) price was $99,262.32.