Gold Hits Record High Above $3,050 as Crypto Markets Rally Post-Fed Decision
Gold continues to dominate the current market cycle, reaching a new all-time high above $3,050 per ounce.
Meanwhile, the crypto market is seeing a moderate rally following the Federal Open Market Committee (FOMC) meeting, where the U.S. Federal Reserve opted to keep interest rates unchanged at 4.25%-4.50%.
Bitcoin (BTC) has surged 4.5% in the past 24 hours, climbing to $85,500—its highest level since March 9.
The CoinDesk 20 index, which tracks the top 20 cryptocurrencies excluding stablecoins, exchange tokens, and meme coins, is up 6%. Leading the charge, Ether (ETH) and Solana (SOL) have gained 7%, while Ripple’s XRP has jumped 10% following CEO Brad Garlinghouse’s announcement that the Securities and Exchange Commission (SEC) intends to drop its case against the company.
Crypto-related stocks are also seeing strong gains, particularly in the bitcoin mining sector. Bitdeer (BTDR) and Core Scientific (CORZ) have risen 10% and 8%, respectively. Bitdeer’s rally may be driven by advancements in its ASIC chip manufacturing process, as well as news that stablecoin issuer Tether has increased its stake in the company to 21%.
Core Scientific’s gains could be linked to AI infrastructure firm CoreWeave—its largest client—filing for an initial public offering (IPO) earlier this month. However, despite today’s upward movement, both companies remain significantly down since their peaks earlier this year, with Bitdeer falling over 61% since January and Core Scientific down 53% since November.
In a post-meeting statement, Federal Reserve Chair Jerome Powell downplayed inflationary concerns linked to tariffs, describing them as “transitory.” He also suggested that recession risks remain low. While markets initially responded positively—Nasdaq, S&P 500, and Dow Jones all gained more than 1%—some analysts remain skeptical.
“The word ‘transitory’ is back at the Fed as Chair Powell characterizes tariff-driven price increases as short-lived,” economist Mohamed A. El-Erian wrote on X. “After the policy missteps of the early 2020s and today’s economic uncertainties, one would expect the Fed to be more cautious. It’s too soon to confidently declare these inflationary effects temporary.”
Gold extended its rally beyond $3,000 per ounce, reaching a fresh record high above $3,050. Callie Cox, chief market strategist at Ritholtz Wealth Management, warned that future rate cuts may come at the expense of stock market performance. “The Fed is signaling discomfort with a smooth transition to neutral rates as inflation nears its target. You could argue that the era of a ‘soft landing’ is over,” she said.
