Bitcoin (BTC) gained nearly 3% in the past 24 hours following the U.S. Federal Open Market Committee (FOMC) meeting, erasing the losses from a Monday plunge that saw prices drop by as much as 8%.
As of Thursday morning in Europe, Bitcoin was trading around $105,000. The market saw a boost after the FOMC’s first meeting under President Trump’s administration concluded, with officials deciding to keep interest rates steady. The move was seen as supportive for both equities and crypto markets.
The Federal Reserve, led by Jerome Powell, maintained the policy rate at 4.25-4.50%, after reducing rates three times in 2024. Powell emphasized the need for further progress on inflation before considering adjustments, stating, “We do not need to be in a hurry to adjust our policy stance.”
While interest rate hikes typically make traditional investments more attractive, potentially decreasing demand for Bitcoin, lower rates can have the opposite effect, making Bitcoin more appealing. Additionally, rate hikes may strengthen the U.S. dollar, which could negatively impact Bitcoin’s price, while rate cuts could boost Bitcoin.
After the FOMC announcement, Bitcoin rebounded sharply, reversing Monday’s sharp decline. The sharp drop earlier in the week was largely driven by liquidations, creating dip-buying opportunities. Other major cryptocurrencies, including Cardano (ADA), Dogecoin (DOGE), XRP (XRP), and Ether (ETH), followed Bitcoin’s lead, rising by as much as 3%. Solana (SOL) outperformed with a 4% gain, and the broader CoinDesk 20 index (CD20) increased by 2.8%.
In the altcoin space, Litecoin (LTC) saw a 14% surge after the U.S. Securities and Exchange Commission (SEC) officially acknowledged the filing of a spot Litecoin ETF by Canary Capital. This marked the first altcoin ETF filing to be recognized by the SEC, beyond Bitcoin and Ethereum.
Bloomberg Intelligence analyst Eric Balchunas commented on X, calling it the “first altcoin 19b-4 to be acknowledged” and highlighting that this filing is the furthest along in the process, meeting all necessary criteria. A public comment period has now been opened, with a decision from the SEC expected in around 240 days.
