The cryptocurrency markets are showing a slight upward movement after the recent Federal Open Market Committee (FOMC) meeting, where the U.S. central bank decided to maintain interest rates at 4.25%-4.50%.
Bitcoin (BTC) has seen a 4.5% increase in the past 24 hours, now trading at $85,500, marking its highest level since March 9.
The CoinDesk 20, which tracks the leading 20 cryptocurrencies by market cap, excluding stablecoins, memecoins, and exchange tokens, has risen by 6%. Both Ether (ETH) and Solana (SOL) have jumped by 7%, and Ripple’s XRP has experienced a 10% rise, following CEO Brad Garlinghouse’s announcement regarding the Securities and Exchange Commission’s (SEC) intention to dismiss its case against the company.
Stocks related to cryptocurrency are also performing well, particularly bitcoin mining firms like Bitdeer (BTDR) and Core Scientific (CORZ), which have increased by 10% and 8%, respectively. Bitdeer’s uptick is likely attributed to recent advancements in its ASIC manufacturing process and the announcement that the stablecoin giant Tether is boosting its investment in the company to 21%.
Core Scientific’s stock may be benefiting from the recent initial public offering application by AI company CoreWeave, its primary customer. However, both companies have seen declines of over 61% and 53% since January and November, respectively.
Jerome Powell, the chair of the Federal Reserve, indicated that inflation linked to tariffs is expected to be temporary and downplayed recession risks. Despite the market’s positive response to the FOMC meeting—with the Nasdaq, S&P 500, and Dow Jones all gaining at least 1%—some analysts remain skeptical.
“The term ‘transitory’ is back in use at the Federal Reserve as Chair Powell describes the price impacts of tariffs as a singular occurrence,” noted economist Mohamed A. El-Erian on X. “One would think that, especially following the significant policy error of earlier this decade and considering the current uncertainties, some Fed officials would exhibit more humility. It’s simply too soon to assert with any degree of confidence that the inflationary impacts will be fleeting.”
Gold prices have continued to climb after surpassing the $3,000 threshold on Tuesday, hitting a new high above $3,050 today. Callie Cox, chief market strategist at Ritholtz Wealth Management, commented that the U.S. central bank seems to be indicating that future rate cuts may be detrimental to stocks. “The Fed no longer appears comfortable gliding toward neutral as they approach their inflation target. One can argue that the soft landing is behind us,” she remarked.