Major cryptocurrencies including Bitcoin, Ethereum” Solana are up—along with U.S. equities—after the Federal Reserve on Wednesday held interest rates steady and the central bank's chair gave a calming press conference.
The biggest cryptocurrency had jumped before the Fed's announcement, but is now up even more: Bitcoin's price now stands at $85,648, a more than 4% rise over the past day. Price rose to $85,890 – the highest since March 9
Ethereum’s price has risen even further: it is now worth $2,038. This is a rise of more than 7 percent over the past year.
Solana, the digital currency that is sixth-largest in terms of value, has increased by nearly 8% within the past 24 hours.
Crypto markets are up more than 3% since yesterday, with a total market capitalization of $2.91 billion.
U.S. stocks surged following Powell's press conference but have cooled off slightly since, with the S&P 500 and Nasdaq both up by more than 1% on the day.
Equities and crypto had taken a battering earlier this month after President Trump's Tax announcements that are unpredictable Wall Street is left guessing at what the White House will do next. Investors adopted a "risk-off" strategy, leading to a stock market and crypto price correction.
But Powell shrugged off concerns in a press conference Wednesday, claiming that Trump's tariffs will have a "transitory" effect on inflation.
The U.S. Central Bank left its benchmark interest rate unchanged at 4.25 to 4.50% as expected on Wednesday. The Fed cut borrowing costs in September for the first time in four years, ahead of sizable gains for both crypto and stocks—with the surge only accelerating once President Trump won November's election.
Andrew Hayward edited the book
