Bitcoin traded around the $105,000 level in European morning hours Thursday as the year’s first U.S. Federal Open Market Committee (FOMC) meeting concluded with the decision to maintain interest rates steady, bolstering sentiment across both stock equities and cryptocurrency markets.
Under the leadership of Jerome Powell, the FOMC opted to keep the policy rate unchanged at 4.25-4.50 percent during its first decision of the Trump presidency, following three consecutive rate reductions earlier in the year. “We do not need to be in a hurry to adjust our policy stance,” Powell remarked in a post-meeting press conference, emphasizing a cautious approach as officials seek further progress on inflation.
This pause in interest rate adjustments is significant, as rate hikes tend to make traditional investments more appealing, potentially dampening demand for Bitcoin. Conversely, lower interest rates can reinforce the attractiveness of Bitcoin, as they render other investment opportunities less favorable. Additionally, a stronger dollar resulting from higher rates could negatively impact Bitcoin’s price, while lower rates have the potential to drive it higher.
In the wake of the FOMC meeting, Bitcoin experienced a robust recovery, adding nearly 3% over the past 24 hours. This gain reversed the losses incurred earlier in the week, when prices plummeted as much as 8% during a liquidation-led flushout, a scenario identified by analysts at CoinDesk as ripe for dip-buying opportunities.
Other major cryptocurrencies mirrored Bitcoin’s impressive gains, with Cardano’s ADA, Dogecoin (DOGE), XRP, and Ethereum (ETH) each rising approximately 3%. Solana’s SOL even outperformed with a notable 4% increase. Furthermore, the broad-based CoinDesk 20 (CD20) index saw an overall rise of 2.8%.
In a significant development outside the major cryptocurrencies, Litecoin (LTC) surged by an impressive 14% following an official acknowledgment from the U.S. Securities and Exchange Commission (SEC) regarding the 19b-4 filing from Canary Capital for a spot Litecoin ETF. This marks a milestone as the first filing of its kind beyond Bitcoin and Ethereum.
Bloomberg Intelligence analyst Eric Balchunas commented on X, stating, “First alt coin 19b-4 to be acknowledged; the rest were told to withdraw by Genz SEC.” He further noted that this filing is the furthest along in meeting regulatory requirements outlined by the SEC, following the comments made on the S-1 and this filing.
A public comment period has now been initiated, setting a 240-day decision deadline for the SEC, which is expected to have significant implications for the future of altcoin investments.
