Bitcoin Stabilizes Above $102,000 After Sharp Drop as Fed Decision Looms

Bitcoin Holds Above $102K as Fed Maintains Rates Amid Trump's Criticism and Powell's Dovish Comments

  • Bitcoin Price stabilized around $102,000 after a brief dip toward $100,000, maintaining its position despite market volatility.
  • The Federal Reserve maintained current interest rates, with Chair Powell delivering dovish comments on inflation trends.
  • Former President Trump criticized the Fed’s handling of inflation and called for significant rate cuts.
  • Powell opened possibilities for banks to serve crypto companies with proper risk management.
  • Market analysts predict Bitcoin could maintain stability above $100,000 if interest rates decrease further.

Bitcoin has stabilized above $102,000 following the Federal Reserve’s latest interest rate decision, while market participants digest Jerome Powell’s dovish stance and former President Donald Trump‘s calls for aggressive rate cuts.

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The cryptocurrency market experienced renewed confidence after Fed Chair Powell signaled continued inflation easing during Wednesday’s press conference. "Banks are perfectly able to serve crypto customers as long as they can understand and service the risks," Powell stated during the post-decision briefing.

ClickOut Media analyst Neil Roarty suggests the current interest rate environment remains conducive to risk assets: "The current 4.25% to 4.5% range is already proving low enough to sustain risk appetite, even if inflation is still higher than the Fed’s target."

The intersection of monetary policy and cryptocurrency markets has become increasingly pronounced. FxPro chief market analyst Alex Kuptsikevich attributed recent market hesitation to pre-Fed meeting caution, highlighting the growing correlation between traditional monetary policy and digital asset valuations.

Former President Trump’s criticism of the Fed’s approach has added another layer of complexity to the market outlook. In a social media post, Trump outlined plans to address inflation through energy production and regulatory reform, while criticizing the Fed’s focus on environmental and social initiatives.

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Market observers, including Barclays economist Ajay Rajadhyaksha, anticipate Powell will maintain the Fed’s independence despite political pressure. This stance was echoed by Isabella Weber of the University of Massachusetts Amherst, who warned about the perception risks of yielding to political pressure for rate cuts.

The CME Group FedWatch Tool indicates market consensus expects rates to remain stable in the near term, following three consecutive meetings of rate reductions. This monetary policy stability has contributed to Bitcoin’s resilience above the psychological $100,000 level.

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