Bitcoin surpassed $105,000 amid Fed statement
January 30, 2025
On January 29, the Fed kept the interest rate at 4.25–4.5%, aligning with market expectations. However, Bitcoin’s rise was triggered by comments from Jerome Powell. After testing $104,000 on the morning of January 30, it surpassed $105,000, reaching $105,450.
What caused the surge?
The Fed Chair stated that banks can engage with cryptocurrencies if they manage risks effectively, signaling a potential easing of regulations. The Federal Reserve described inflation as "somewhat elevated," and Powell noted that rate cuts are possible but dependent on new macroeconomic data.
Market reaction
Following the Fed meeting, investors adjusted their expectations: the probability of a rate cut in March dropped from 31.5% to 17%, and forecasts shifted from May to June.
The market reacted mixedly: the S&P 500 fell by 0.47%. Strong reports from Meta and IBM helped offset weak results from Tesla and Microsoft.
The Fed remains on track with its liquidity reduction strategy, continuing to sell government bonds as part of QT.