Key Points
- Bitcoin’s price has risen above $58,000 after the U.S. Federal Reserve maintained the current interest rates.
- The Federal Open Market Committee has decided to continue reducing its holdings of Treasury securities and agency debt.
Bitcoin’s value has once again surpassed the $58,000 mark. This price increase occurred after the U.S. Federal Reserve announced that it would keep interest rates at their current level.
The Federal Open Market Committee, as predicted by most analysts, decided to maintain the benchmark federal funds rate within the current range of between 5.25% and 5.50%. The central bank confirmed this in an official statement.
The Future of Interest Rates
The central bank also commented on the possibility of a rate cut. They stated that they do not anticipate reducing the target range until they have greater confidence that inflation is moving sustainably toward 2%.
The Committee also plans to continue reducing its holdings of Treasury securities and agency debt. Starting from June, the monthly redemption cap on Treasury securities will be reduced from $60 billion to $25 billion.
Bitcoin’s Market Position
Currently, Bitcoin is hovering around the $58,000 mark. There has been a noticeable increase in BTC short liquidations recently. The majority of recent liquidations were shorts, with $6 million out of $6.8 million liquidated in the past hour.
Major stock indices have remained strong despite the possibility of cuts coming later than expected. The Dow Jones was up 0.4%, the S&P 500 gained 1.02%, and the Nasdaq Composite rose 2.03% during mid-day trade in the U.S. on Friday.
The yield on the 10-year Treasury note decreased slightly after the Fed announcement, settling at 4.683% on Tuesday. The U.S. dollar is currently on a strong rally against everything, according to a recent report by QCP Capital.
The CME’s FedWatch tool now predicts a 93.6% chance that rates will remain steady at June’s FOMC meeting.
