Bitcoin and S&P 500 hit 10-day highs after Fed decision
Date: 2025-03-20 Author: Oliver Abernathy Categories: CRYPTO PAYMENTS
After the Fed meeting on Wednesday and Jerome Powell's press conference, investors took the news with relief: the regulator confirmed its intention to cut rates twice this year. This was in line with market expectations, where the probability of such a decision was already priced in. According to FedWatch CME, before the announcement, the probability of a rate cut was estimated at less than 1%.
Against this backdrop, Bitcoin soared above $87,000, setting a 10-day high. On Thursday morning, the growth continued, temporarily rising to $87,621, but then the rate partially rolled back below $86,000.
An additional factor that supported the cryptocurrency market was the news of an upcoming update to Trump's crypto strategy, which caused a new wave of interest in digital assets.
Despite the positive reaction of the markets, the revised forecasts of the Fed indicate a slowdown in economic growth and an acceleration in inflation. According to the updated data, the GDP growth rate in 2025 is expected to be at 1.7% instead of 2.1%, and the inflation forecast has been raised to 2.8% compared to 2.5% in December.
The FOMC statement noted increased uncertainty in the economic outlook. However, the lack of surprises from the Fed played in favor of the markets: the S&P 500 and Dow Jones rose by about 1%, and the Nasdaq Composite added about 1.5%.
Notably, Bitcoin and the S&P 500 simultaneously hit 10-day highs after a recent correction, once again demonstrating the link between traditional and digital assets. However, not all experts are confident in the durability of this growth, believing that the rally may be short-lived.
