Bitcoin ( BTC ) rose past the$ 105,000 mark on Wednesday as investor sentiment changed as a result of the Federal Reserve’s decision to halt its interest rate cuts. &nbsp,

The country’s largest crypto, which immediately dipped to$ 101, 800 after the announcement, immediately rebounded, marking its highest level in three days.

During the Federal Open Market Committee meeting, the Fed left its benchmark interest rate unchanged, keeping it within the target range of 4.25 % to 4.50 %. &nbsp,

Since President Donald Trump’s election defeat in November, Bitcoin has gained over 50 %, fueled primarily by anticipation of more crypto-friendly procedures under his supervision.

As the Federal Reserve continues to monitor financial information, investors remain optimistic but cheerful about Bitcoin’s path. &nbsp,

” Immediate growth, as we’ve seen in previous bull processes, may not follow as much of the enthusiasm surrounding Trump’s attitude on bitcoin has already been priced in following new optimistic changes”, Gracy Chen, CEO of Bitget, told . &nbsp,

The federal funds rate has been reduced by 100 basis items since September, which is the third consecutive price cut to date. &nbsp,

Fed Chair Jerome Powell stated in a press conference after the meeting that the decision to hold rates steady was influenced by the continuing strength of the economy and frequent inflation.

Powell noted while inflation has eased significantly from its 2022 peak of 9.1 %, it remains at 2.9 % annually, making further rate adjustments uncertain. &nbsp,

The Fed chairman’s notes immediately pushed Bitcoin and stocks higher, with BTC crossing$ 103, 000 before surging more.

Traditional businesses showed a mixed response, with the Nasdaq falling 1.1 % and the S&amp, P 500 declining 0.9 %. Gold remained in demand, holding steady above$ 2, 750 in early Asian trading on Thursday.

Powell, when asked about electronic goods, stated that U. S. institutions are free to offer crypto clients as long as they manage associated challenges. &nbsp,

Some market participants found this to be a good development because the Fed chair also made an implication that Congress needs more stringent regulations.

The broader crypto market responded positively to the Fed’s decision, with Ethereum ( ETH) and Solana ( SOL ) trading in narrow ranges. ETH is up 2 % to$ 3, 184, while SOL has gained 4.1 % to$ 239, CoinGecko data shows.

Despite recent benefits, some experts warn that Bitcoin’s protest may face resistance.

The world’s largest crypto briefly hit a record$ 109, 241 before President Trump’s inauguration in January but has since retraced.

” While some believe the crypto industry will find considerable interest from the new management, it’s important to temper cost anticipation”, Chen said.

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