Bitcoin Holds Steady After Fed Leaves Rates Unchanged

Bitcoin traded slightly higher on Wednesday after the United States Federal Reserve decided to keep interest rates steady. The leading cryptocurrency moved up by nearly one percent right after the announcement, bringing its price to around $64,402 per coin.

As most analysts expected, the central bank left the federal funds rate in the 3.50% to 3.75% range. Three members of the policy committee actually preferred a quarter percentage point rate hike at this meeting, showing some internal pressure for tighter policy.

Speaking to the press after the decision, new Fed Chair Kevin Warsh gave few hints about future rate cuts. He stated that the central bank has zero tolerance for stubborn inflation. Crypto investors often look for lower rates to boost digital assets, but sticky inflation means the market may have to wait longer for any monetary relief.

Traders should keep a close eye on upcoming economic data and future Fed statements. If inflation refuses to cool down, the central bank might keep borrowing costs high, which tends to limit major rallies in the crypto market.