The US Federal Reserve decided to keep the interest rate constant between 3.5 and 3.75 percent at its meeting on Wednesday, April 29. The Federal Open Market Committee, which determines economic policies, preferred to leave no change in the borrowing interest by majority vote. This development was taken under the shadow of inflation pressure and uncertainties in the economic outlook.
Details of Interest Decision
While 8 members of the committee voted in favor of keeping the interest rate constant, 4 members expressed a different opinion. Committee member Stephen Miran objected to lowering interest rates by 25 basis points. Beth Hammack, Neel Kashkari and Lorie Logan supported keeping interest rates constant, but opposed the loosening signals in the Fed’s statement. This information was shared in the official announcement of the institution.
The Fed stated that it will closely examine economic data, risk balances and the general outlook before taking a new step in interest rates in the future. The bank renewed its commitment to keep the unemployment rate low and inflation steady around its 2 percent target.
Market Reaction and Bitcoin
After the decision was announced, there was a rapid fluctuation in the cryptocurrency markets. The value of Bitcoin fell from approximately $76,200 to $75,000 due to the interest rate decision that was in line with expectations and the impact of differences of opinion within the committee. Some recovery was seen in a short time and the cryptocurrency approached the level of $ 75,760 again.
Post-meeting market data showed that Bitcoin dropped from 76 thousand dollars to 75 thousand dollars in the first hours and recovered again after a short time.
In other market reports, it was observed that Bitcoin fell below 75 thousand dollars from time to time after the interest rate decision. The main reasons for this activity were investors turning to safer havens, reducing positions in risky assets, and not expecting a significant reduction in interest rates until 2026.
Financial experts state that the upward interest rate environment generally puts pressure on risky assets, as the appeal of traditional investment options such as cash and bonds increases. This may cause sharper price movements in volatile cryptocurrencies such as Bitcoin.
Effects on the Global Market
After the decision was announced, other financial assets also became active. According to Investopedia’s report, it was seen that Bitcoin rose to $77,900 at one point, and dropped to $75,000 after the decision. In the same period, while an upward movement was observed in the US dollar, there was a decline in gold prices. This reaction showed that the risk appetite in the markets decreased after the Fed’s decision.
Most investors stated that the decision was not a surprise, but the division among committee members created short-term uncertainty in the market. The sudden price drop in cryptocurrency markets, especially Bitcoin, revealed how sensitive the perception of risk is.
Cryptocurrency markets will continue to closely monitor the steps the US Federal Reserve will take depending on new macroeconomic data and inflation indicators in the coming days.
