Reserve

Jerome Powell

Chair

Bitcoin

<img width="1200" height="799" src="https://coingape.com/wp-content/uploads/2021/12/b25lY21zOmM4MDUyOGQ4LTAyMDItNDYzZi05YWVhLWNhYjcyYmUxOGZiODpkODQwM2U0OC0wYWJlLTRlZjEtOTc2Ny1mYzc4NDAxNDIwNDc-e1657726363976.jpg" class="attachment-full size-full wp-post-image" alt="Experts Weigh In On US Fed Rate Hike Decision, How It Impacts Crypto" decoding="async" style="float:right; margin:0 0 10px 10px;" srcset="https://coingape.com/wp-content/uploads/2021/12/b25lY21zOmM4MDUyOGQ4LTAyMDItNDYzZi05YWVhLWNhYjcyYmUxOGZiODpkODQwM2U0OC0wYWJlLTRlZjEtOTc2Ny1mYzc4NDAxNDIwNDc-e1657726363976.jpg 1200w, https://coingape.com/wp-content/uploads/2021/12/b25lY21zOmM4MDUyOGQ4LTAyMDItNDYzZi05YWVhLWNhYjcyYmUxOGZiODpkODQwM2U0OC0wYWJlLTRlZjEtOTc2Ny1mYzc4NDAxNDIwNDc-e1657726363976-300x200.jpg 300w, https://coingape.com/wp-content/uploads/2021/12/b25lY21zOmM4MDUyOGQ4LTAyMDItNDYzZi05YWVhLWNhYjcyYmUxOGZiODpkODQwM2U0OC0wYWJlLTRlZjEtOTc2Ny1mYzc4NDAxNDIwNDc-e1657726363976-768x511.jpg 768w, https://coingape.com/wp-content/uploads/2021/12/b25lY21zOmM4MDUyOGQ4LTAyMDItNDYzZi05YWVhLWNhYjcyYmUxOGZiODpkODQwM2U0OC0wYWJlLTRlZjEtOTc2Ny1mYzc4NDAxNDIwNDc-e1657726363976-272x182.jpg 272w, https://coingape.com/wp-content/uploads/2021/12/b25lY21zOmM4MDUyOGQ4LTAyMDItNDYzZi05YWVhLWNhYjcyYmUxOGZiODpkODQwM2U0OC0wYWJlLTRlZjEtOTc2Ny1mYzc4NDAxNDIwNDc-e1657726363976-391x260.jpg 391w, https://coingape.com/wp-content/uploads/2021/12/b25lY21zOmM4MDUyOGQ4LTAyMDItNDYzZi05YWVhLWNhYjcyYmUxOGZiODpkODQwM2U0OC0wYWJlLTRlZjEtOTc2Ny1mYzc4NDAxNDIwNDc-e1657726363976-150x100.jpg 150w" sizes="(max-width: 1200px) 100vw, 1200px">
According to a recent announcement, the Federal Reserve has maintained its benchmark interest rate. This marks the third successive meeting where the Fed has chosen stability over change, keeping rates constant. The interest rates have remained at a 22-year peak, ranging from 5.25 to 5.5%. This move reflects the Federal Reserve’s <a href="https://coingape.com/bitcoin-btc-price-moves-closer-to-40000-as-fed-stays-put-on-rate-hikes/">attempt </a>to balance its dual mandate of controlling inflation while minimizing economic disruption. 
<h2 id="bitcoin-s-surge-linked-to-fed-decision">Bitcoin’s Surge Linked to Fed Decision</h2> 
Significantly, this decision has echoed across financial markets, particularly in cryptocurrency. Bitcoin, for instance, has witnessed a remarkable surge, reaching a new intraday high of $42,709, <a href="https://coingape.com/price/bitcoin/">according </a>to Coingape. This rise in Bitcoin’s value seems directly tied to the Fed’s interest rate stance, which traditionally influences alternative investment attractiveness. Lower interest rates often make government securities less appealing, bolstering the appeal of assets like cryptocurrencies. 
<img decoding="async" class="aligncenter wp-image-169206" src="https://coingape.com/wp-content/uploads/2023/12/screenshoteasy-2023-12-14T001853.369.png" alt="" width="732" height="351" srcset="https://coingape.com/wp-content/uploads/2023/12/screenshoteasy-2023-12-14T001853.369.png 978w, https://coingape.com/wp-content/uploads/2023/12/screenshoteasy-2023-12-14T001853.369-300x144.png 300w, https://coingape.com/wp-content/uploads/2023/12/screenshoteasy-2023-12-14T001853.369-768x368.png 768w, https://coingape.com/wp-content/uploads/2023/12/screenshoteasy-2023-12-14T001853.369-150x72.png 150w" sizes="(max-width: 732px) 100vw, 732px"> 
BTC/USD price chart 
<h2 id="predictions-and-market-reactions">Predictions and Market Reactions</h2> 
Moreover, the Federal Reserve’s <a href="https://coingape.com/us-fed-rate-cuts-to-start-after-bitcoin-halving-in-q3-goldman-sachs/">current approach</a> has altered expectations for future monetary policy. Rate futures now suggest a more than 60% probability of a rate cut by March 2024. This likelihood has jumped significantly, with May rate cut expectations soaring to 90%.&nbsp; 
Following these developments, yields on U.S. securities, particularly those ranging from 2 to 7 years, have declined over 15 basis points. These shifts indicate a potentially more accommodative monetary policy, hinting at an environment conducive to growth in risk assets such as Bitcoin. 
Despite the current steadiness, the Fed’s <a href="https://coingape.com/fed-officials-set-for-higher-rate-hikes-after-imf-report-bitcoin-risks-falling-to-25k/">path forward</a> remains nuanced. Fed Chair Jerome Powell has indicated that further rate cuts are uncertain. The Federal Reserve continues to navigate a complex economic landscape, striving to mitigate inflation without triggering increased job loss or economic downturn. This delicate balancing act is crucial at a time when the economy shows signs of fragility yet steers clear of recession. 
Read Also: <a href="https://coingape.com/bitcoin-etf-sec-chairs-new-take-leaves-more-questions-than-answers/?utm_source=cgtelegram">SEC Chair’s New Take Leaves More Questions Than Answers</a> 
The post <a href="https://coingape.com/bitcoin-rebounds-above-42k-as-fed-keeps-rates-steady/">Bitcoin Rebounds Above $42K as Fed Keeps Rates Steady</a> appeared first on <a href="https://coingape.com">CoinGape</a>.

Bitcoin Rebounds Above $42K as Fed Keeps Rates Steady

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