Fed Holds Key Rate Steady, Bitcoin Shows Mild Reaction Amid Economic Uncertainty

On June 18, the U.S. Federal Reserve (Fed) maintained its key interest rate in the range of 4.25% to 4.5%.

«The Committee aims to achieve maximum employment and a long-term inflation rate of 2%. While uncertainty regarding economic indicators has lessened, it remains elevated,» stated the Fed in its commentary.

This decision aligned with market expectations and the consensus forecast from analysts.

According to the Federal Reserve’s statement, recent indicators point to a rise in economic activity, a low unemployment rate, and stable conditions in the labor market. However, inflation continues to be elevated.

Following the release of this information, Bitcoin experienced a slight volatility and high trading volumes. Initially, the value of the asset surged to $104,800 briefly, but later fell to $104,000.

At the time of writing, the leading cryptocurrency is trading at around $104,500.

Overall, assets within the top 10 by market capitalization showed minimal reaction to the Fed’s data.

The total market capitalization of cryptocurrencies is $3.35 trillion, representing a 1.9% decrease over the past 24 hours.

During the press conference, Fed Chairman Jerome Powell remarked that inflation in the United States remains high, and short-term expectations for the rate have risen due to tariffs on imports.

It is worth noting that in May, the Consumer Price Index (CPI) in the U.S. increased by 0.1% compared to a 0.2% rise in April. Year-on-year, the unadjusted figure has risen to 2.4%.