Market Watch

Bitcoin Trades Flat Near $118K as Fed Holds Rates Steady

Bitcoin hovered near $118,000 on Wednesday after the Federal Reserve held interest rates steady at 4.25% to 4.5%, maintaining a cautious stance amid persistent inflation and moderate growth. The Fed noted economic activity has slowed in the first half of the year, while the labor market remains strong and inflation “somewhat elevated.” Officials said they’ll continue to monitor data closely, with uncertainty around the outlook still high.

Two Fed governors, Michelle Bowman and Christopher Waller, dissented, favoring an immediate 25 basis point cut, arguing the current stance may be too tight. The Fed also confirmed it would continue quantitative tightening, with no signal yet of QE or a policy shift. The decision comes as Trump ramps up pressure on the Fed to cut rates, saying it would boost growth and reduce interest costs on debt. Meanwhile, according to the CME FedWatch Tool, market odds for a September rate cut slightly rose to 61%, after briefly dipping to 56% ahead of the Fed’s announcement.

Terron Gold

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