Bitcoin Price Today: Rises to $85K as Fed Rate Decision Boosts Market Sentiment
Bitcoin (BTC) surged to $85,775.5 on Thursday, extending its gains as market sentiment improved following the Federal Reserve’s decision to maintain its rate cut projections. The Fed’s stance provided relief to risk-driven markets, including cryptocurrencies, which have been recovering from a month-long slump.
Bitcoin Gains Momentum After Fed Meeting
The Federal Reserve kept interest rates unchanged, as widely expected, but signaled that rates could fall by 50 basis points by the end of the year. This dovish outlook boosted investor confidence, leading to gains in Bitcoin and other risk assets.
Fed Chair Jerome Powell highlighted ongoing economic uncertainty, particularly due to President Trump’s aggressive trade tariff policies. However, the central bank’s commitment to supporting growth and controlling inflation provided a much-needed boost to markets.
Bitcoin’s rise reflects its growing correlation with traditional markets, as investors increasingly view it as a hedge against economic uncertainty.
XRP Rallies as SEC Drops Lawsuit Against Ripple
XRP emerged as a standout performer, rising 7.3% to $2.4599 after the Securities and Exchange Commission (SEC) dropped its long-running lawsuit against Ripple. This decision came after a major overhaul of the SEC under the Trump administration, which appointed pro-crypto officials like Paul Atkins as SEC Chair.
The SEC’s move is seen as a positive development for the crypto industry, as it signals a more favorable regulatory environment. Earlier this year, the SEC also dropped actions against major exchanges like Coinbase and Kraken.
Altcoins Follow Bitcoin’s Rally
The broader crypto market also saw gains, with altcoins tracking Bitcoin’s upward momentum:
Ether (ETH): Rose 4.1% to $2,018.12.
Cardano (ADA): Gained 2.9%.
Solana (SOL): Jumped 6.4%.
Polygon (MATIC): Increased by 2.6%.
Meme tokens also joined the rally, with Dogecoin (DOGE) rising 4.1% and $TRUMP adding 3.6%.
Several factors are contributing to the crypto market’s recovery:
Fed’s Dovish Stance: The central bank’s rate cut projections have improved risk appetite.
Regulatory Clarity: The SEC’s decision to drop its lawsuit against Ripple has boosted confidence in the crypto sector.
Bargain Buying: Investors are capitalizing on lower prices after a month of risk aversion.
Key Takeaways for Crypto Investors
Bitcoin’s correlation with traditional markets is strengthening, making it a key asset to watch during economic uncertainty.
Regulatory developments, such as the SEC’s actions, are playing a significant role in shaping market sentiment.
Altcoins and meme tokens are benefiting from improved market conditions, but investors should remain cautious due to their volatility.
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