Yahoo Finance Bitcoin price rises past $43,000 after Fed interest rate pause
Bitcoin (BTC-USD) bounced back above $43,000 (£33,979) in early-day trading on Thursday, after the US Federal Reserve announced another rate pause at its latest meeting.
This was the first time that bitcoin rallied above $43,000 since Monday's flash crash which saw the crypto market retrace the last two weeks of gains.
The Fed's rate hold was in line with analysts' predictions, maintaining its benchmark interest rate in a range of 5.25%-5.50%.
Read more: Crypto live prices
The move marked the fourth rate pause of the year after the central bank held rates steady in November, September, and June.
"Tighter financial and credit conditions for households and businesses are likely to weigh on economic activity, hiring, and inflation," the Fed said in a statement.
"Recent indicators suggest that growth of economic activity has slowed from its strong pace in the third quarter. Job gains have moderated since earlier in the year but remain strong, and the unemployment rate has remained low," it added.
Possibility of rate cuts
The Federal Reserve now anticipates a reduction of 75 basis points next year. Out of 19 Fed officials, 17 foresee lower rates by the end of 2024, with none predicting an increase.
Federal Reserve chair Jerome Powell said the central bank was aware of the risk of "overdoing it" and pushing the economy into a recession.
Read more: Bank of England poised to leave interest rates on hold
Risk assets in general were strengthened after bond yields and the US dollar index (DXY) fell sharply on the Fed's dovish projection for 2024.
Wall Street soared higher on Wednesday afternoon following the Federal Reserve’s policy decision. The Dow Jones Industrial Average (^DJI) rose 1.4%, the S&P 500 (^GSPC) was up 1.4% and the Nasdaq (^IXIC) also gained 1.4%.
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