Bitcoin (BTC) gained nearly 3% in the last 24 hours, recovering from an 8% plunge earlier this week, as the Federal Open Market Committee (FOMC) concluded its meeting and kept interest rates unchanged. The decision to hold rates steady at 4.25-4.50% provided a boost to both stock and cryptocurrency markets, with Bitcoin trading around $105,000 during European morning hours on Thursday.
Chairman Jerome Powell led the FOMC’s decision to maintain the current policy rate, marking the first decision of Trump’s presidency after three consecutive rate cuts in 2024. Powell remarked that there was no rush to change the policy stance as officials continued to monitor inflation progress.
The decision to hold rates steady generally benefits Bitcoin, as lower interest rates reduce the appeal of traditional investments and make digital assets like Bitcoin more attractive. Conversely, higher interest rates can dampen demand for Bitcoin by making other investments more appealing and strengthening the dollar.
Bitcoin’s rise came after a sharp sell-off on Monday, which had seen prices drop by as much as 8%, as liquidations triggered a widespread market drop. However, the recent recovery erased these losses, and other cryptocurrencies followed Bitcoin’s lead. Cardano (ADA), Dogecoin (DOGE), XRP (XRP), and Ether (ETH) all saw gains of up to 3%. Solana (SOL) outperformed the broader market with a 4% increase, while the CoinDesk 20 index rose by 2.8%.
In addition to these gains, Litecoin (LTC) surged 14% after the U.S. Securities and Exchange Commission (SEC) acknowledged a filing from Canary Capital for a spot Litecoin ETF. This marks the first altcoin filing of its kind to be recognized by the SEC, setting a new precedent after previous filings for altcoin ETFs were rejected. The filing is currently under review, and the SEC has initiated a 240-day public comment period before making its final decision.
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