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Bitcoin Rallies 4.5% for First Time in 5 Days Amid Fed’s Rate Hold

Bitcoin Price Rebounds After Federal Reserve’s Decision on Interest Rates

The price of Bitcoin has seen its first increase in five days, reflecting a renewed appetite for riskier assets following the Federal Reserve’s decision to maintain interest rates at their current levels. The leading cryptocurrency by market capitalization surged by as much as 4.5%, reaching a value of $104,783.

Recent fluctuations in cryptocurrency prices have been attributed to volatility across broader markets, triggered by the emergence of the Chinese artificial intelligence firm Deepseek. Historically, Bitcoin’s price movements have paralleled those of stock markets, highlighting its connection to traditional financial instruments.

Federal Reserve Chair Jerome Powell provided insights into the bank’s monetary policy stance, stating that officials are in no rush to cut interest rates. He emphasized the Fed’s objective of monitoring significant progress in inflation, particularly after a series of price declines experienced in the previous year.

In addition to these comments, Coinshares has reported that the cryptocurrency market has become increasingly sensitive to interest rate changes. As a result, the Fed’s cautious approach regarding interest rates could exert downward pressure on the prices of digital assets, amidst a backdrop of tight financial conditions.

Metric Value
Bitcoin Price (in USD) $104,783
Price Increase 4.5%
Recent Market Trends Increased Volatility

The current dynamics within the cryptocurrency market underscore the ongoing interplay between digital currencies and macroeconomic factors, particularly interest rate policies set by central banks.

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