Federal Reserve Announcement Sparks Market Surge
Bitcoin (BTC) surged past $85,000 following the Federal Open Market Committee (FOMC) announcement of potential interest rate cuts in 2025. The Federal Reserve also revealed plans to slow its balance sheet runoff starting April 1.
Market Reaction
- Bitcoin’s price jumped from $84,235.71 to nearly $86,000 before settling at $85,363.
- Ethereum (ETH) saw a 0.6% increase to $2,039.11.
- Cardano (ADA) experienced a slight 0.5% growth.
- XRP and BNB showed minimal price changes.
- Solana (SOL) crossed the $130 mark and was trading at $133.55.
Fed’s Rate Projections
The FOMC’s updated projections reflect a more cautious approach to rate cuts in 2025. The median forecast anticipates an interest rate of approximately 3.9% by year-end.
Key Points:
- Nine policymakers expect two cuts, down from 10 in December.
- Longer-term interest rate forecasts remain stable.
- 2025 GDP projection revised downward to 1.7%.
Tariffs and Inflation
Federal Reserve Chair Jerome Powell addressed concerns over tariff-related inflation during a press conference. He described tariff-driven inflation as “transitory” but acknowledged the uncertainty of its long-term impact.
Implications:
- Fed’s cautious stance on rate cuts and quantitative tightening adjustments.
- Focus on balancing economic stability and inflation control.
- Market reacts positively to Fed’s announcements.
Market Data
Bitcoin’s market cap stands at $1.7 trillion with a 24-hour trading volume of $32.82 billion. The total crypto market is valued at $2.8 trillion with a Bitcoin dominance of 60.67%.
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Featured cryptocurrencies: Bitcoin, Cardano, Ethereum, Solana, XRP.