Catenaa, Thursday, January 30, 2025 –The Federal Reserve kept its benchmark interest rate unchanged at 4.25%-4.50% on Wednesday, January 29, citing “elevated inflation” and a strong labor market, while bitcoin remained steady above $100,000.
“The Committee decided to maintain the target range for the federal funds rate at 4.25% to 4.50%,” the Fed said in a statement.
“Economic activity has continued to expand at a solid pace,” while inflation remains “somewhat elevated.” The central bank added that it would monitor economic data and adjust monetary policy as needed.
Bitcoin edged up 0.5% in the last 24 hours, hovering around $105,000. Analysts say that multiple Fed rate cuts later this year could propel bitcoin to new highs, potentially reaching $200,000 by year’s end.
“If bitcoin holds above $100,000, it signals strength for the asset,” said Matt Mena, a crypto research strategist at 21Shares.
“Two or more rate cuts could provide the catalyst needed for bitcoin to break above $110,000 and test $125,000 or $150,000.”
Meanwhile, Standard Chartered reaffirmed a bullish outlook, predicting institutional inflows will dominate the market in the latter half of 2025.
The bank maintains a year-end price target of $200,000 for bitcoin and $10,000 for ether.
Despite ongoing regulatory uncertainty, former President Donald Trump has signaled a pro-crypto stance through executive actions, including the repeal of SAB 121 and discussions around a strategic digital assets reserve.
