Bitcoin surged past $105,000 following the Federal Reserve’s decision to maintain current interest rates, with Fed Chair Jerome Powell affirming that U.S. banks can serve cryptocurrency clients, provided they effectively manage associated risks. On Thursday, Bitcoin climbed 3%, trading just above $105,000 after dipping to $101,800 the previous day. This marks its highest level in three days. Powell stated during the post-Federal Open Market Committee (FOMC) press conference that banks can engage with crypto customers as long as they understand and mitigate the risks involved.
He emphasized that financial institutions under the Fed’s oversight must ensure their operations remain “safe and sound.” Bitcoin is currently about 4% below its all-time high of $109,241, reached just before President Donald Trump’s inauguration on January 20. Other cryptocurrencies also posted gains, with Ethereum rising 2.5% to $3,210 and Solana increasing 3.7% to $240, according to market data. During its latest meeting, the Fed decided to leave the benchmark interest rate unchanged, maintaining a target range of 4.25% to 4.50%.
This move was widely anticipated by market participants, with data from the CME FedWatch tool indicating an 82% probability that rates will remain steady at the central bank’s next policy meeting on March 19. The decision to pause rates follows a series of reductions last year that cumulatively lowered the federal funds rate by 100 basis points. Powell attributed this stance to ongoing economic resilience and persistent inflationary pressures.
While inflation has significantly declined from its 2022 peak of 9.1%, it currently stands at 2.9% annually, keeping future rate adjustments uncertain. In another regulatory development, President Donald Trump has nominated Paul Atkins, a lawyer known for his pro-crypto stance, to lead the Securities and Exchange Commission (SEC). This move is seen as part of broader efforts to establish the U.S. as a key player in the global digital asset market. Analysts suggest that the combination of regulatory clarity and high-level endorsements is driving renewed optimism in the cryptocurrency sector. – By CryptoWire News Desk.