Hold onto your hats, folks, because the Federal Reserve just held its first big pow-wow of the year, and it's a doozy! With the infamous Donald J. Trump now at the helm as President, the anticipation was electric. But, as the dust settles, the US Fed decided to keep things steady and not mess with the key interest rates in this initial meeting.
Now, let's talk Bitcoin, our favorite digital rollercoaster! It had been chilling around the $102,000 to $103,000 mark, taking a breather after some wild rides. However, as soon as the Fed's decision hit the airwaves, Bitcoin decided it was time to take a little tumble, losing a cool grand faster than you can say “Satoshi Nakamoto.”
Flashback to the last FOMC meeting of 2024, where the Fed had trimmed interest rates by 25 basis points. They even hinted at putting a pause on further cuts in 2025, citing inflation monsters lurking in the shadows. Enter President Trump, with his rallying cry for lower rates, but the smart money was betting the Fed would hold their ground, keeping rates between 4.25% and 4.5%.
The latest CPI data threw a curveball, showing inflation wasn't as fierce as some had feared. But, the Fed played it safe, keeping rates steady, possibly waiting for more data and seeing how Trump's fiscal plans unfold.
For those of us in the crypto world, this decision had a ripple effect. Bitcoin, which had been flirting with stability, quickly saw its value dip, reminding us once again that in the world of crypto, nothing stays still for long! So buckle up, because it's going to be an exciting ride!
