Bitcoin Price Rebounds Above $102,000 After Fed Meeting Calamity: Why Is BTC Going Up?
By Benzinga
Bitcoin (CRYPTO: BTC) has rebounded to $102,250 after taking a nosedive on Thursday following the FOMC meeting.
What Happened: Bitcoin cratered from above $105,000 before Thursday’s trading session to a low of $98,839 during U.S. night time hours.
It has since rebounded and is down 2.5% over the past 24 hours.
Crypto chart analyst Ali Martinez explained in an X post following the Fed meeting that the reaction wasn’t due to the 25-bps rate cut, which was largely expected, but rather concerns over persistent inflation and the possibility of prolonged elevated interest rates.
Despite the negative sentiment, Martinez advised traders to “keep calm, don’t panic sell,” emphasizing that markets dislike uncertainty but typically stabilize once clarity emerges.
Coinglass data reveals that total liquidations in the past 24 hours amounted to $788.5 million, with over 269,623 traders liquidated.
Also Read: Donald Trump Reportedly Discussed Bitcoin Reserve In Meeting With Crypto․com CEO Kris Marszalek
Why It Matters: Fed Chair Jerome Powell added to market jitters by calling the decision a “closer call,” hinting at divisions within the Federal Reserve.
This boosted the U.S. Dollar to its highest level since 2022, putting pressure on risk assets like Bitcoin, which experienced a sharp drop.
In a separate tweet, Martinez highlighted funding rates suggesting leveraged positions:
He also noted, “Binance traders were right; we should have shorted Bitcoin.”
Martinez previously noted that 62.6% of Binance traders with open BTC futures positions were going short, aligning with the bearish market sentiment.
Key takeaways from the Fed meeting included the expectation of fewer rate cuts in 2025 (down from three to two), higher inflation forecasts for 2025 (2.5%) and 2026 (2.1%), exceeding the Fed’s 2% target, and an acknowledgement that inflation metrics like core CPI, core PCE and PPI are ticking up.
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Image created using artificial intelligence with Midjourney.
