SUMMARY Bitcoin saw a nearly 3% rise on Wednesday as the Federal Reserve maintained interest rates within the anticipated range of 5.25%-5.50%. Concurrently, major stock indices posted gains in early afternoon trading following the Fed’s announcement.
The Federal Open Market Committee adhered to analysts’ expectations, keeping the benchmark federal funds rate unchanged for the fourth time in 2023. The central bank expressed concerns about tightened financial and credit conditions affecting households and businesses, potentially impacting economic activity, hiring, and inflation. While acknowledging eased but elevated prices, the Fed noted a slowdown in economic growth from the robust pace observed in the third quarter. Despite a slight pullback from its early December high, Bitcoin reached $42,428 by 2:00 p.m. in New York.
The global cryptocurrency market cap increased by 1.2% over the last 24 hours, reaching $1.65 trillion. Broader financial markets responded optimistically to the Fed’s announcement, with the Nasdaq, S&P 500, and Dow Jones Industrial Average posting gains of 0.6%, 0.6%, and 0.5%, respectively.
