Bitcoin holds ground as Fed leaves interest rates unchanged

The Federal Reserve left its key interest rate steady on June 18, choosing caution as it monitors persistent inflation and global uncertainties.

Bitcoin (BTC) remained largely stable, continuing to hold recent gains despite broader market jitters.  The flagship crypto was trading at $104,110 as of press time, down 0.66% over the past 24 hours.

Rates maintained

The central bank’s Federal Open Market Committee announced it would maintain its policy rate within the current 4.25% to 4.5% target range, matching market expectations.

Policymakers emphasized that any future rate changes would depend on incoming economic data, citing healthy job growth and moderate progress on inflation as reasons to pause.

The total value of digital assets globally edged up to $3.23 trillion, reflecting cautious optimism among crypto traders who have kept a close watch on U.S. monetary policy.

Financial markets widely anticipated the Fed’s decision, especially with recent oil price increases adding new risks to inflation forecasts. Tensions in the Middle East, particularly between Israel and Iran, have also contributed to a more cautious economic outlook.

A survey from CME Group showed traders were almost certain, with a 99.9% probability, that the Fed would hold rates steady, despite repeated calls from the White House to push for a rate cut.

Trump calls for cuts

President Donald Trump intensified criticism of Fed Chair Jerome Powell on June 18, accusing him of damaging economic momentum by keeping borrowing costs too high.

Trump claimed that lowering rates by two percentage points would spur investment and support markets, contrasting U.S. policy with recent rate cuts by European central banks.

Even so, the Fed has signaled it intends to stay the course in its effort to bring inflation back in line with its 2% target, resisting political pressure amid a complex economic backdrop.

Bitcoin’s steady performance highlights how some investors continue to treat the token as a potential buffer against traditional market and policy shifts. However, geopolitical flashpoints and volatile commodity prices could test the crypto market’s relative calm in the months ahead.

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