Bitcoin Steady at $98K Amid Caution Following Fed’s Policy Shift
Bitcoin’s price settled at $98,124.6 after two days of growth as investors adopt a cautious stance due to macroeconomic pressures from the U.S. Federal Reserve’s recent decisions. The cryptocurrency faced challenges following a shift in interest rate forecasts. Meanwhile, Russia is increasingly utilizing Bitcoin in international trade amid sanctions, adding a layer of complexity to the market landscape.
Bitcoin’s price has stabilized at approximately $98,124.6 after experiencing two consecutive days of growth. Market activity appears muted as investors tread cautiously amid macroeconomic uncertainties following the U.S. Federal Reserve’s recent policy update. A notable drop below the $100,000 threshold occurred last week, following indications from Fed officials of a slower pace for future interest rate reductions, which has contributed to a bearish sentiment surrounding speculative assets like Bitcoin and cryptocurrencies in general.
Recent actions taken by the U.S. Federal Reserve have significantly influenced Bitcoin’s market behavior. Following the Fed’s hawkish shift, indicating only a couple of interest rate cuts for 2025 instead of the projected four, investor sentiment towards Bitcoin has dampened. Given this volatile backdrop, Bitcoin’s price saw a previous surge to an all-time high but has since declined due to profit-taking amid external economic pressures. Furthermore, the cryptocurrency landscape is also reshaped by global movements, including Russia’s recent embrace of Bitcoin for international trade, as they adapt their economic strategies in light of Western sanctions.
In conclusion, Bitcoin’s current price stabilization at $98,124.6 reflects the cautious sentiment among investors, influenced largely by macroeconomic signals from the Federal Reserve. Despite the positive gains earlier, the outlook remains uncertain as macro pressures and regulatory changes, especially from countries like Russia, impact the broader cryptocurrency market. Key rivals to Bitcoin also experienced declines, indicating a subdued demand for speculative digital assets in the current economic climate.
Original Source: ng.investing.com
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