Bitcoin returns to $98K as Fed holds rates steady despite Trump’s demand
Bitcoin has reached $98,000 for the first time in nearly three months following the US Federal Reserve's decision to maintain interest rates at 4.25% to 4.50%. This decision was influenced by concerns over rising unemployment and inflation risks, despite pressure from President Trump to cut rates. Fed Chair Jerome Powell noted that inflation remains above the 2% target and that economic sentiment has declined due to trade policy uncertainties. The unemployment rate is low, and the labor market is near maximum employment. Bitcoin initially dropped to $95,866 after Powell's speech but rebounded to $98,000 shortly after. The Crypto Fear & Greed Index indicates a return to "Greed," with Bitcoin ETFs seeing inflows of nearly $4.41 billion since March 26. Economist Timothy Peterson warned that prolonged rate stability could lead to a market downturn, potentially lowering Bitcoin's value to $70,000.
