At 4:13 PM GMT+5:30 PM on Thursday, January 30, 2025, a 3-minute read
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Following the Federal Reserve’s decision to maintain interest rates at their current level, Bitcoin (BTC-USD) surged beyond $105,000 (£84,359). Fed head Jerome Powell stated that banks can serve crypto clients as long as they successfully manage the risks.
After plunging to its highest level in three days on Wednesday at $101,800, Bitcoin recovered 3% to trade at slightly over $105,000 on Thursday.
Powell stated at the press conference following the Federal Open Market Committee (FOMC) on Wednesday that banks are fully capable of serving cryptocurrency clients as long as they are able to comprehend and manage the risks.
The Fed chair emphasized the need for banks under Fed supervision to make sure their clients’ operations are “safe and sound.”
Continue reading: Real-time cryptocurrency prices
Prior to President Donald Trump’s inauguration on January 20, Bitcoin hit a record high of $109,241, which is now about 4% below its current value.
According to CoinGecko data, Solana (SOL-USD) increased 3.7% to $240 on Thursday, while Ethereum (ETH-USD) increased 2.5% to $3,210.
CoinMarketCap•USD (CCC)
Bitcoin USD (BTC-USD)
Fed holds interest rates steady
The Fed maintained its target range of 4.25% to 4.50% for its benchmark interest rate during the FOMC meeting. Interest rate dealers were expecting this move. Interest rate traders are also projecting an 82% chance that rates will stay halted at the US central bank’s upcoming policy meeting on March 19, according to the CME’s FedWatch tool.
The rate freeze comes after the federal funds rate was lowered by 100 basis points overall last year. Powell cited continued economic strength and enduring inflationary pressures as the reasons for the decision to maintain rates at their current level.
See also: Fed maintains rates unchanged and withdraws remarks regarding inflation progress
Powell pointed out that although inflation has considerably decreased from its peak of 9.1% in 2022, it is still at 2.9% annually, making further rate adjustments uncertain.
Markets react to rates hold
Despite recovering from their lowest points of the day, US stocks ended Wednesday’s trading session lower as the Federal Reserve maintained its interest rate stance.
The S&P 500 (^GSPC) was mostly impacted by technology companies, with Microsoft (MSFT) and Nvidia (NVDA) both declining 1.1% and 4.1%, respectively. The drops occurred two days after a tech selloff sparked by the introduction of AI models by Chinese startup DeepSeek, which the company said were less expensive and ran on less sophisticated CPUs than those used by US-based OpenAI.
Following the Fed’s announcement, stocks initially deepened their losses, with the Nasdaq (^IXIC) at one point sliding more than 1% in afternoon trading.
Czech National Bank governor backs bitcoin reserves
Aleš Michl, the governor of the Czech National Bank (CNB), reaffirmed his plan to include bitcoin in the country’s central bank reserves, which is a major step forward for the digital asset industry.
Continue reading: LIVE FTSE 100: As the ECB is anticipated to lower interest rates, stocks rise.
Michl stated that additional research and debate were still required before deciding to invest in bitcoin in a subsequent post on X.
“We are diversifying our reserves by aiming for 30% in stocks and progressively raising our gold holdings from 0% to about 5%. Bitcoin is one of the assets being considered. It is an intriguing asset for a sizable portfolio and currently has no link to bonds. Worth taking into account. It’s just at the analytical and discussion stage right now,” he stated.
