Following the Federal Reserve's decision to maintain unchanged interest rates, #Bitcoin (#BTC ) experienced a slight recovery, halting its recent two-day decline. Despite the Fed's indication of keeping rates steady and its cautious stance on inflation reaching the 2% target, Bitcoin's trajectory remained uncertain.
Fed Chair Jerome Powell's remarks during the subsequent news conference suggested a cautious approach, emphasizing the need for further improvement before considering rate reductions. This reinforced the Fed's position of maintaining higher rates for a longer duration.
In the immediate aftermath of the Fed announcement, memecoins like Dogwifhat (WIF), Floki Inu ($FLOKI ), and Bonk ($BONK ) witnessed a brief rally, showcasing a 6% recovery. However, Bitcoin and Ethereum ($ETH ) experienced only marginal changes during the same period.
Bitcoin's recent volatility saw a notable decline over the past two days, reflecting a challenging start to Q2 and extending losses from April into May. While BTC briefly recovered to $58,000 post-Fed speech, subsequent fluctuations suggested ongoing selling pressure, leaving its recovery to the $60,800 range-low uncertain.
Amid the Fed's "higher for longer" policy stance and negative flows from US Bitcoin #ETFs , the market remains attentive to Bitcoin's ability to regain momentum amidst prevailing uncertainties.