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Under pressure this week, the price of bitcoin dipped to $101,800 in the moments following the decision.
By James Van Straten|Edited by Stephen Alpher
Jan 29, 2025, 7:05 p.m. UTC
What to know:
- The Federal Reserve kept its benchmark fed funds rate range steady at 4.25%-4.50%, in line with market expectations.
- In its accompanying policy statement, the central bank said inflation remains “somewhat elevated.”
- Fed Chair Jerome Powell’s post-meeting press conference begins shortly.
As expected, the U.S. Federal Reserve has kept its benchmark fed funds range rate steady at 4.25%-4.50%, the first pause since the central bank began easing policy last September.
The accompanying policy statement noted that the unemployment rate had stabilized at a “low level” and inflation remained “somewhat elevated.”
Under pressure for most of this week, the price of bitcoin (BTC) dipped to $101,800 shortly following the news.
Since the Fed’s first September rate cut, the fed funds rate has been slashed by 100 basis points. The U.S. 10-year Treasury yield, however, has gone in the opposite direction, rising to 4.6% fro 3.6% — a divergence between short-term and long-term rates that rarely has been seen.
That divergence as well as a series of stronger than expected reports on the economy and inflation has not been lost on the Fed. Following the bank’s December meeting, Chair Jerome Powell made clear that any further rate cuts — at least for the moment — were on hold.
Powell’s post-meeting press conference begins shortly, at which market participants will look for further guidance about future policy.
James Van Straten is a Senior Analyst at CoinDesk, specializing in Bitcoin and its interplay with the macroeconomic environment. Previously, James worked as a Research Analyst at Saidler & Co., a Swiss hedge fund, where he developed expertise in on-chain analytics. His work focuses on monitoring flows to analyze Bitcoin’s role within the broader financial system.
In addition to his professional endeavors, James serves as an advisor to Coinsilium, a UK publicly traded company, where he provides guidance on their Bitcoin treasury strategy. He also holds investments in Bitcoin, MicroStrategy (MSTR), and Semler Scientific (SMLR).
