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His statement renewed confidence in bitcoin and the broader cryptocurrency market, leading to a notable surge.
So, what does this mean forcryptos future?
It maintained its Fed funds target rate in a range of 4.25% to 4.50%.
Powell attributed the rate pause to the economic resilience and persistent inflation.
However, major cryptocurrencies like bitcoin, ethereum and solana saw a modest uptick hours after the news.
This surge means theres market optimism over continued liquidity stability.
Additionally, the rate pause suggests that stable economic conditions are sufficient to avoid aggressive tightening.
This creates an ideal environment for crypto markets, which thrive on liquidity.
Until the Fed lowers interest rates or implements measures that increase monetary stimulus, altcoins will likely underperform bitcoin.
Bitcoins stronger institutional appeal and macro resilience remain the safer bet in a hawkish monetary environment.
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