Bitcoin Touches $98K After Fed Holds Rates Steady Amid Political Pressure

Bitcoin broke back above the $98,000 mark for the first time in nearly three months on Tuesday, following the U.S. Federal Reserve’s decision to leave interest rates unchanged. The move, announced by Fed Chair Jerome Powell on May 7, came despite mounting pressure from former President Donald Trump, who recently accused Powell of dragging his feet on rate cuts and even hinted at replacing him. Fed Holds the Line In a press briefing following the decision, Powell acknowledged that while inflation has eased substantially from its peak, it remains above the Fed’s long-term target of 2% . “Inflation has come down a great deal but continues to run above our objective,” he said. Powell also pointed to a growing unease among households and businesses, with many expressing concerns about economic policy, particularly Trump’s renewed trade rhetoric, which has stirred uncertainty in financial markets. The Federal Open Market Committee chose to keep the benchmark rate in the range of 4.25% to 4.50%, citing the need for more clarity before making a policy pivot. Powell stressed that the labor market remains robust and that the economy overall is in a “solid position,” but warned against prematurely easing policy while inflationary risks linger. Bitcoin Reacts With a Sudden Surge Initially, Bitcoin dipped slightly to around $95,866 following Powell’s comments, but the market quickly rebounded, pushing the price to just over $98,000—levels not seen since late February. Traders appear to have interpreted the Fed’s steady stance as a green light for continued momentum in risk assets, especially as Bitcoin regains favor among institutional and retail investors alike. Fueling the surge is a steady stream of capital flowing into spot Bitcoin ETFs , which have seen inflows nearing $4.41 billion since late March. At the same time, the Crypto Fear & Greed Index has returned to “Greed” territory, signaling a growing bullish sentiment across the crypto space. Still, not everyone is convinced the rally can hold. Network economist Timothy Peterson warned in March that if the Fed delays cuts deep into 2025, broader market weakness could follow—and Bitcoin, too, could retrace toward the $70,000 range. For now, though, Bitcoin appears to be regaining its footing in a macro environment where traditional financial institutions are still treading carefully. The post Bitcoin Touches $98K After Fed Holds Rates Steady Amid Political Pressure appeared first on TheCoinrise.com .

Source: The Coin Rise