Bitcoin Holds Steady After FOMC Meeting
Bitcoin hovered around the $105,000 mark during European morning hours on Thursday, following the conclusion of the first U.S. Federal Open Market Committee (FOMC) meeting of the year. The FOMC, led by Chairman Jerome Powell, opted to maintain the policy rate at 4.25-4.50%, a significant decision as it marked the first rate hold of President Trump’s administration after three consecutive rate cuts earlier in 2024.
In a post-meeting press conference, Powell stated, “We do not need to be in a hurry to adjust our policy stance,” emphasizing the need for further progress on inflation before making any changes. Interest rate hikes typically enhance the attractiveness of traditional investments, which could diminish the demand for Bitcoin. On the other hand, a reduction in rates often benefits Bitcoin, as it makes alternative investments less appealing. Additionally, higher interest rates can strengthen the U.S. dollar, potentially exerting downward pressure on Bitcoin’s price, while lower rates could have the opposite effect.
Following the FOMC meeting, Bitcoin experienced a nearly 3% increase over the past 24 hours, successfully reversing the losses from a turbulent Monday that saw prices plummet by as much as 8%. This decline was largely attributed to a wave of liquidations, which created ripe conditions for dip-buying opportunities, as highlighted by CoinDesk.
Other major cryptocurrencies mirrored Bitcoin’s upward movement, with Cardano’s ADA, Dogecoin (DOGE), XRP (XRP), and Ether (ETH) all experiencing gains of up to 3%. Notably, Solana’s SOL outperformed the pack with a robust 4% rise. The broad-based CoinDesk 20 (CD20) index also saw an increase of 2.8%.
In a noteworthy development outside the major cryptocurrencies, Litecoin (LTC) surged by an impressive 14%. This spike followed the U.S. Securities and Exchange Commission (SEC) officially recognizing the 19b-4 filing from Canary Capital for a spot Litecoin ETF, marking a historic first for altcoins beyond Bitcoin and Ethereum. Bloomberg Intelligence analyst Eric Balchunas commented on X, stating, “First altcoin 19b-4 to be acknowledged; the rest were told to withdraw by Genz SEC.” He added that the comments from the SEC regarding the S-1 and this filing indicate it is the most advanced in terms of meeting regulatory requirements.
A public comment period has now commenced, with a decision from the SEC expected within approximately 240 days.
