Bitcoin took $ 98,000 for the first time in almost three months after the US Federal Reserve said it would maintain interest rates for another month.
The Fed's decision to keep interest rates coming up despite the pressure mounted from US president Donald Trump, who only threatened to burn feed chair Jerome Powell for being “late” to cutting rates.
Fed noted increased unemployment, inflation risk
Powell Says On May 7 when the Federal Reserve Rate-setting committee held rates at 4.25% to 4.50% range due to rising risks of increased unemployment and increased inflation.
He added inflation was “dropped a good but running above our 2% longer goal.” Powell said that surveys in households and businesses showed a “sharp decline in emotion” mainly because of Trump's trade policy concerns.
However, Powell said that “despite increasing uncertainty, the economy is still in a stable position.” On days extending up to the announcement, the data from the CME group Fedwatch tool It is indicated that the futures market expects minimal odds of a cutting rate.
Powell said the unemployment rate remains low, and the labor market is “in or close to maximum work.” The market Looking forward The Fed to drop the Fed fund rate at 3.6% by the end of 2025.
Bitcoin (BTC) dropped below $ 97,000 to $ 95,866 after Powell's speech, but it shot to have $ 98,000 in the first time since February. 21 Just a few hours.
The Bitcoin Momentum builds up, with the Crypto Fear & Greed Index returning to the “greed” territory, and see funds exchanged by the Bitcoin (ETF) exchange posting nearly $ 4.41 billion from March 26th.
Related: Bitcoin price rally at 1,550% in the last time the 'BTC risk-off' metric fell to this low
On March 9, network economist Timothy Peterson warned that if the Fed had stopped rate cuts by 2025, it could cause a broader market collapse, which potentially drag Bitcoin back to $ 70,000.
Peterson's forecast came after Powell said in March that “we don't have to rush and properly positioned to wait for more clarity.”
Magazine: Adam Back said the bitcoin price cycle was '10x greater', there's 'empathy' for ETF consumers
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