Bitcoin holds steady at $104K as Fed eyes inflation from tariffs before easing

Key Takeaways

Bitcoin held regular at $104K because the Federal Reserve maintained rates of interest at 4.25%-4.50%.
The Fed tasks two charge cuts in 2025, with a gradual easing to three.4% by 2027.

Bitcoin hovered round $104,200 on Wednesday after the Federal Reserve left its benchmark rate of interest unchanged at 4.25% to 4.50%, in step with expectations.

Whereas policymakers nonetheless venture two charge cuts this yr, they struck a cautious tone, citing rising inflation tied to tariffs as a motive to delay motion.

The Fed’s up to date financial projections, together with its quarterly dot plot, confirmed officers anticipate the benchmark charge to fall to three.9% by the tip of 2025, implying 50 foundation factors of cuts this yr. Nonetheless, the tempo of easing past that’s slower than beforehand anticipated, with charges seen at 3.6% in 2026 and three.4% in 2027.

At his post-meeting press convention, Chair Jerome Powell dominated out hikes as the bottom case however emphasised the necessity to look forward to extra readability.

“We’ll make a better determination if we wait a few months,” he mentioned, pointing to uncertainty round how a lot tariffs will have an effect on inflation. He added that “the labor market shouldn’t be crying out for a charge lower” and that present situations permit the Fed to remain affected person.

Different projections confirmed greater inflation expectations in comparison with March. The Fed now sees PCE inflation at 3% and core PCE at 3.1% for 2025. GDP progress was revised all the way down to 1.4%, whereas the unemployment charge was projected to rise to 4.5% this yr and stay elevated via 2026.

Bitcoin was little modified after the announcement, whereas US fairness markets moved greater.