- BTC topped $105K post-Fed’s rate pause decision.
- Key levels to watch in the short term were $108K, $110K, and $97.5K.
After the recent Fed rate decision, Bitcoin [BTC] reacted moderately and reclaimed $105K. On the 29th of January, the Fed held interest steady at 4.25%- 4.5%, citing elevated inflation as the reason for the rate pause.
Part of the agency statement read,
“The unemployment rate has stabilized at a low level in recent months, and labor market conditions remain solid. Inflation remains somewhat elevated.”
BTC reacts to inflation fears
Despite the ‘hawkish stance,’ Chair Jerome Powell was not overly bearish during the press conference. In fact, he was open to dropping rates even if the 2% inflation goal wasn’t met.
That said, the market expected the rate pause. Powell’s presser’s mixed signals kept BTC within the short-term $100K-$105K range.
Interestingly, President Donald Trump didn’t approve the Fed’s rate pause decision and slammed Powell. He added that he would handle U.S. inflation by unleashing more energy production to bring down the prices of goods.
Source: X
That said, the market focus will shift to key inflation data and the Fed’s favorite—the PCE (Personal Consumption Expenditures) price index, set to be released on January 31st.
