Bitcoin (BTC) surpassed $85,000 following the Federal Open Market Committee (FOMC) meeting, where the Fed decided to keep interest rates steady at 4.25%-4.50%.
BTC's rise rate in the last 24 hours was recorded as 4.39%.
The general financial markets also responded positively to the Fed's decision, with the Nasdaq, S&P 500 and Dow Jones all gaining over 1%. Addressing inflation concerns, Fed Chairman Jerome Powell said that tariff-related price increases were expected to be temporary and that recession risks remained low.
Despite the initial market optimism, some analysts remain cautious. Economist Mohamed A. El-Erian said Powell’s use of the term “temporary” to describe the inflationary effects was reminiscent of past policy missteps. “The word ‘temporary’ has returned to the Fed, with Chairman Powell characterizing the price effects of tariffs as a one-off,” El-Erian said. “It is too early to say with any confidence decline that the inflationary effects will be temporary.”
Meanwhile, gold prices continued their upward trend, exceeding $3,050 after breaking the $3,000 barrier earlier in the week. Callie Cox, chief market strategist at Ritholtz Wealth Management, said the Fed’s stance suggests a reluctance to ease monetary policy too quickly. “The Fed is no longer comfortable shifting to neutral as it gets closer to its inflation target. I think you could argue the soft landing is over,” Cox said.
However, US President Donald Trump will make a statement at a crypto conference tomorrow, which could affect the BTC price.
*This is not investment advice.
