Bitcoin was trading higher on Wednesday – but only slightly – after the Federal Reserve decided to keep interest rates steady.
It was the leading cryptocurrency Recently priced At approximately $64,402 per coin, after rising nearly 1% in the hour following the announcement.
As expected, the US central bank Leave The federal funds rate ranges from 3.50%-3.75%. Three of the 12 members of the policy-setting Federal Open Market Committee “favored” a quarter-point rate hike at this meeting.
Speaking to the press following the announcement, the new Fed Chairman, Kevin Warsh, revealed little about where the central bank will go next.
“The Fed is interested in the issue,” he said. “I have been delighted by the reception I have received. We are more committed to providing services than ever before.”
He added that the July interest rate decision was a “rigorous review of the economic situation.”
“I cannot describe what we did as a temporary pause,” he said. “I would describe what we did as a careful review of the economic situation. I would describe what we did as a review of the big, difficult questions.”
Warsh, who took office in May, said he had “zero tolerance” for inflation, which has been exceeding the central bank’s target for more than five years.
Bitcoin has typically performed well in a low interest rate environment, and cryptocurrency investors were hoping the Federal Reserve would lower interest rates to boost the digital asset.
President Donald Trump has called for lower interest rates since taking office, and has clashed with former Federal Reserve Chairman Jerome Powell over the issue.
For now, it doesn’t look like Warsh will go in that direction as inflation continues to trouble Americans.
The Federal Reserve began aggressively raising interest rates in 2022 in an attempt to control 40-year-high inflation triggered by the COVID-19 pandemic. Bitcoin has been affected by the tightening.
Then, in 2024, the central bank cuts interest rates repeatedly. It has been reluctant to cut it since the end of 2025.
