Bitcoin (BTC) experienced a surge in price on Wednesday following the latest Federal Open Market Committee (FOMC) meeting, where the Federal Reserve opted to maintain interest rates unchanged.
This decision maintains the central bank’s benchmark rate within the range of 5.25% to 5.50%, dampening investors’ expectations for a more accommodative stance in the immediate future.
Prior to the announcement, Bitcoin was trading at $62,000, but quickly climbed to $64,600 as the updated interest rate was disclosed. In its statement, the Fed highlighted ongoing economic expansion, low unemployment rates, and persistent inflation.
The Fed expressed its intention to hold off on reducing the target range until it is more confident in achieving sustainable inflation around 2 percent. Market sentiment, as reflected in CME FedWatch, indicates expectations of unchanged interest rates at the next FOMC meeting in May, but with a 60% likelihood of a 25 basis point reduction in June.
Bitcoin’s price had previously declined from $74,000 amid significantly reduced net flows into Bitcoin ETFs, which turned negative over the past two days. This trend coincided with higher-than-anticipated inflation data in the U.S. for February, registering at 3.2% on March 12.
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