The Federal Reserve keeps interest rates unchanged, Bitcoin breaks through $98,000

ChainCatcher news, according to Cointelegraph, the Federal Reserve announced that it will maintain the federal funds rate at 4.25%-4.50%. Federal Reserve Chairman Powell emphasized that inflation will rise, reaching the 2% target, but the economy remains solid. The market expects the rate to rise to 3.6% by the end of 2025. Despite pressure from President Trump to cut rates, the Federal Reserve decided to keep rates unchanged.

As a result, the price of Bitcoin experienced significant volatility, dropping to $95,866 on May 7 before quickly rebounding to over $98,000, reaching a nearly three-month high. Sentiment in the cryptocurrency market has shifted to "greed," with $4.41 billion flowing into spot Bitcoin ETFs over the past six weeks. Analysts warn that if the Federal Reserve delays rate cuts in 2025, Bitcoin could face the risk of falling back to $70,000.