Bitcoin, XRP, and Ether Recover Losses Following Fed’s Interest Rate Decision
Major cryptocurrencies rebounded after overnight declines, influenced by the Federal Reserve's decision to maintain interest rates at 4.25%. Analysts view this as a sign of President Trump's increasing influence over the Fed, potentially bolstering long-term crypto prospects.
- The Fed's Chairman Jerome Powell emphasized prioritizing inflation control over government borrowing and mortgage costs.
- Initial reactions saw bitcoin drop to $116,000, with XRP, ether, and solana also declining.
- Current prices are BTC at $118,400, XRP at $0.00314, and ETH at $3,870.
- The CoinDesk 80 Index rose by 0.8% to approximately 915 points.
- Two Trump appointees on the Fed dissented, advocating for a rate cut, raising concerns about the Fed’s independence.
- Upcoming July CPI data may impact market direction, with potential initial sell-offs followed by rebounds in case of persistent inflation fears.
- Analysts suggest that significant changes in Fed policy could lead to increased interest in hard assets like BTC.
Concerns regarding the Fed's independence persist, particularly if Powell is dismissed or if rates are reduced prematurely, which could result in substantial shifts in crypto and bond markets.