Bitcoin Tests $80,000 After Fed Rate Hold

The Federal Reserve has maintained the key interest rate at 3.75–4% per annum. Inflation in the US remains above the target level of 2%, and the head of the regulator, Kevin Warsh, stated the need to gather more data before the next decision. Two FOMC members, Lisa Cook and Beth Hammack, advocated for a 0.25 percentage point increase.

The US stock market slightly slowed its growth following the Fed's decision, as noted by Reuters. Bitcoin reacted calmly, maintaining the $81,000 level. After the opening of Asian markets, the price dropped to approximately $79,800. According to CoinDesk, additional pressure on risky assets was exerted by a more than 5% drop in Samsung shares: despite a 15-fold increase in operating profit of the semiconductor division, the results did not meet analysts' expectations. By the time of writing, Bitcoin had recovered to $80,400.

Investors highly estimate the likelihood of another rate hike in December. According to CME FedWatch, after the meeting, it reached approximately 83%, whereas a month ago it barely exceeded 49%. "A lot can happen, so I can't share with you my thoughts on what will happen when this group meets again in six weeks," Warsh said at a press conference.

The future dynamics of Bitcoin will be influenced not only by signals from the regulator but also by the yield on US government bonds, the dollar exchange rate, and the overall appetite for risk, stated Theo's Chief Investment Officer, Iggi Ioppe, in a comment to Cointelegraph. He also noted that markets had priced in the rate hold but not the Fed's "hawkish tone." Additional guidelines will be fresh US inflation data and financial results of major tech companies, noted Bitget analyst Lewis Huang.

Previously, a surge in oil prices in October interrupted the nascent recovery of the crypto market, a view presented in a column for ForkLog by trader and Telegram channel Coen+ author Vladimir Cohen. A similar conclusion was reached by analyst under the pseudonym Darkfost.