Cryptocurrency Surge Following Federal Reserve’s Interest Rate Decision
Bitcoin, Ethereum, and XRP have surged significantly after the Federal Reserve chose to hold interest rates steady, with Bitcoin rising 4% to $84K, Ethereum increasing 8% to $2,034, and XRP jumping 10% to $2.47. The Fed revised down its growth expectations and plans to adjust its balance sheet strategy, indicating economic uncertainty ahead.
The cryptocurrency markets are experiencing a notable increase, particularly for Bitcoin, Ethereum, and XRP, following the Federal Reserve’s recent decision to maintain steady interest rates. Bitcoin has seen a 4% rise within the last day, reaching a price of $84,000, as reported by News.Az citing foreign media sources.
Similarly, Ethereum has surged by 8%, now trading at approximately $2,034, while XRP has led the gains with a substantial increase of 10% to $2.47 during the same timeframe. This uptick in cryptocurrency values comes in the wake of the Fed’s announcement regarding its economic outlook.
The Federal Reserve has revised its growth expectations downward, forecasting a slower U.S. GDP growth rate of 1.7% in 2025, compared to an earlier estimate of 2.1% from December. Furthermore, anticipations for economic growth in 2026 and 2027 have also been adjusted downwards, indicating heightened uncertainty regarding the economy’s direction.
In addition, the Fed revealed intentions to decelerate the pace of its balance sheet runoff starting in April, introducing further intricacies into its monetary policy. The central bank expressed caution with its economic projections, acknowledging that both real economic activity and inflation data are subject to significant unpredictability.
The Fed remarked, “As with real activity and inflation, the outlook for the future path of the federal funds rate is subject to considerable uncertainty,” emphasizing the implications of trade policies and global economic risks on their assessments.
The recent surge in Bitcoin, Ethereum, and XRP follows the Federal Reserve’s decision to hold interest rates steady amid a cautious economic forecast. With adjusted growth projections and plans to slow balance sheet reductions, the Fed has acknowledged considerable uncertainty in future economic developments. These dynamics are crucial in understanding the current momentum in cryptocurrency markets.
Original Source: news.az
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