Bitcoin May Face Volatility Amid Fed Rate Hold and Ongoing Inflation Uncertainty

Key Points

1. The Federal Reserve kept interest rates steady at 4.25%-4.50%, resulting in Bitcoin dropping 0.1% to $117,777 and Ethereum rising 0.4% to $3,809.

2. Inflation data showed a 0.3% monthly increase, pushing the annual Consumer Price Index to 2.7%, the highest since February, creating a complex environment for digital assets.

3. Fed Chair Jerome Powell's focus on economic data over political factors is crucial for crypto investors, as his statements could influence market sentiment.

4. Geopolitical tensions, such as those in Ukraine and Gaza, are contributing to market uncertainty and affecting crypto sentiment.

5. Analysts suggest that a dovish tone from Powell could boost crypto markets, while hawkish signals might trigger sell-offs, reflecting broader economic sentiment.