Bitcoin (BTC) saw a nearly 3% gain over the past 24 hours, making a strong recovery after an 8% drop earlier in the week. The price rebound came after the Federal Open Market Committee (FOMC) wrapped up its first meeting of 2025, leaving interest rates unchanged at 4.25-4.50%. This decision helped boost market sentiment across both equities and crypto markets, with Bitcoin hovering around $105,000 during European trading hours on Thursday.
FOMC Chair Jerome Powell emphasized that there was no immediate need to adjust policy, citing ongoing efforts to tackle inflation. This rate pause follows a series of three consecutive rate cuts in 2024, signaling a more cautious approach moving forward.
The decision to maintain rates supports Bitcoin, as lower interest rates tend to make traditional investments less attractive, prompting more investors to turn to cryptocurrencies. In contrast, higher rates typically strengthen the U.S. dollar and may reduce demand for digital assets like Bitcoin.
Bitcoin’s price had taken a significant hit earlier in the week due to a large-scale liquidation, but the market’s swift recovery shows that dip-buying opportunities remain attractive. Alongside Bitcoin’s gains, other major cryptocurrencies also saw positive movement, with Cardano (ADA), Dogecoin (DOGE), XRP (XRP), and Ether (ETH) rising by up to 3%. Solana (SOL) led the pack with a 4% increase, while the CoinDesk 20 index saw a 2.8% gain.
In a significant development, Litecoin (LTC) saw a 14% jump after the U.S. SEC officially acknowledged the filing for a spot Litecoin ETF by Canary Capital. This marks the first altcoin to receive such recognition, setting a new precedent for the industry. The filing is now under review, with a 240-day public comment period before the SEC makes its final decision.
