Bitcoin increases slightly by 0.42% to $104,364 after Fed maintains 4.25-4.50% interest rates, while Trump criticizes Chairman Powell for not cutting rates.
The Federal Reserve (Fed) continued to maintain the base interest rate between 4.25-4.50% in Wednesday's meeting, a decision in line with market expectations but without significant impact on Bitcoin's price. For the fourth consecutive time, the Fed maintained its monetary policy, citing high inflation and uncertain US economic prospects.
The risky asset market responded quite positively, with the S&P 500 index rising 0.30%, Nasdaq increasing 0.41%, and Dow Jones up 0.29%. However, Bitcoin (BTC) remained nearly flat with a modest 0.42% increase to $104,364.49, reflecting cautious cryptocurrency investor sentiment amid a lack of strong motivations.
Contrary to market stability, President Donald Trump reacted strongly to the Fed's decision not to cut interest rates. Before the policy announcement, he posted on Truth Social: "Wow!!! The real wage increase for ordinary workers is THE BEST IN 60 YEARS!" Trump cited a White House report showing real income for low-skilled workers increased by 1.7% in the first 5 months of his term – the highest since the 1960s – as evidence that the Fed should have eased monetary policy earlier.
Weak Trend and Cautious Sentiment
After a 2.8% adjustment when Israel attacked Iran last week, Bitcoin failed to make a strong recovery. The Fed's decision to maintain monetary policy was also insufficient to provide momentum for digital assets. Last week, Bitcoin still decreased by 4.25%, though today it fluctuated within a narrow range from $103,646.41 to $105,581.85.
Market indicators show investment sentiment is stagnating. 24-hour trading volume dropped sharply by 17.9% to $46.93 billion, reflecting investors' waiting attitude. Market capitalization slightly increased by 0.61% to $2.07 trillion, while market dominance ratio increased by 0.13 percentage points to 64.90%, indicating Bitcoin remains more stable compared to most altcoins.
Signals from the derivatives market also show speculation is slowing down. Open interest on futures contracts decreased by 2.54% to $69.13 billion, reflecting weakening confidence among leveraged traders. Liquidation in 24 hours reached $46.36 million, with $30.08 million from Long positions and $16.28 million from Short positions, indicating Long investors are still experiencing larger losses as the correction trend dominates.
In the official statement after the meeting, the Fed noted: "Inflation remains high. Although uncertainty in economic prospects has slightly decreased, it remains significant... To support its objectives, the Committee decides to maintain the target range for the federal funds rate at 4.25% to 4.5%." This decision aligns with the expectations of 99% of experts surveyed by Bloomberg previously.
