Bitcoin Rebounds After Volatile FOMC Event

As expected, the US Federal Reserve made no changes to interest rates this morning. Despite this widely anticipated decision, which had almost a 100% probability of no cut leading into the announcement, Bitcoin and the broader crypto market experienced significant volatility, beginning to decline within minutes of the news. Within the first 18 minutes, Bitcoin fell 1.43% to $101.3k before rebounding in anticipation of Powell’s speech.

At first, the market reaction wasn’t looking great. A sharp drop followed the expected no rate cut, but Powell's tone proved pivotal. Rather than a hawkish stance, he leaned dovish, signalling that policymakers are in no hurry to lower interest rates further. He emphasised the need for consistent inflation data before considering additional easing and expressed confidence in the current policy stance, citing a strong labour market and expectations of continued inflation progress.

Once the market detected the dovish tone, Bitcoin reversed course and began to rally, reaching a high of $104.7k just an hour later. This shift led to a sea of green across the crypto market. However, Bitcoin’s strength was not entirely mirrored by major altcoins…

The three largest altcoins—Ethereum, Solana, and Ripple—all followed Bitcoin’s rally post-FOMC but struggled to hold gains. Unlike Bitcoin, which is now almost $1,000 higher than yesterday, none of these projects managed to close or trade above their previous day's price levels. A disappointing outcome, but at least the market emerged from this major event relatively unscathed.

Meanwhile, strong projects like Ondo continued to impress, closing over 10% up yesterday. Even Sonic—a fundamentally great project that has underperformed price-wise—saw a 12% daily gain.

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