Bitcoin Price Surges 1.8% – Are Investors Back in the Market After Fed’s Decision?

Bitcoin Price – Fed’s Rate Hike Talks and Bitcoin’s Resilience: What You Need to Know

Bitcoin Price – Bitcoin traders appeared to take the Federal Reserve’s interest rate decision well—perhaps too well, according to Nigel Green, CEO of deVere Group. Although the Federal Reserve did not cut interest rates, as many in the crypto space might have hoped, the remarks by Fed Chair Jerome Powell provided some optimism to the markets, especially with the potential of two rate cuts later in the year.

Powell’s Optimistic Outlook and the Tariff Factor

Powell’s comments, reassuring markets that the inflationary effects of tariffs would be short-lived, seemed to contribute to a surge in stock markets. However, Green cautions that President Donald Trump’s tariffs on imported goods could have lasting economic effects, especially as these protectionist policies encourage U.S.-based manufacturing. Green argues that while this “American-made” policy might seem appealing, it will also come with higher labor costs and a significant increase in wages, which could further fuel inflation.

Green’s concerns are not just theoretical. He expressed in a note shared with Decrypt that the idea of inflationary pressures quickly subsiding under the current economic conditions is wishful thinking at best. While markets may have bought into Powell’s optimistic messaging, the long-term consequences of tariffs could limit any immediate economic benefits.

Bitcoin’s Recent Price Action

As of the latest data, Bitcoin’s price has seen a 1.8% increase in the last 24 hours, trading at $85,208 at the time of writing. Bitcoin had briefly surged above $86,000 earlier in the day, according to CoinGecko data. However, despite these recent gains, Bitcoin remains about 11% lower than it was just a month ago, reflecting the volatility in the market.

Despite the price fluctuations, on-chain prediction market MYRIAD—launched by Decrypt’s parent company DASTAN—shows that traders remain largely bullish on Bitcoin. Over 74% of MYRIAD users expect Bitcoin to hold above $83,000 by the end of the week, reflecting continued confidence in the leading cryptocurrency.

ETF Activity Slows but Sustained Interest in Crypto Markets

The activity in Bitcoin ETFs has slowed considerably, as recent data reveals a mere $11.8 million in inflows for Bitcoin ETFs. Meanwhile, Ethereum ETFs have seen $11.7 million in outflows, continuing the trend of diverging net flows between the two assets. This could signal that the market is evolving, with investors becoming more selective about their crypto ETF choices.

However, BRN analyst Valentin Fournier noted in his Thursday trading report that while inflows have decreased, overall trading volumes remain high. This suggests that while short-term interest in Bitcoin ETFs may have slowed, the broader market engagement remains elevated, signaling continued investor participation in the space.

Solana ETF Announcement Boosts Market Sentiment

Fournier also provided an update on Solana, rating it as “overweight” following some major news in the ETF space. Volatility Shares is launching two Solana ETFs, including the Volatility Shares Solana ETF, which will track Solana futures contracts, and the Volatility Shares 2x Solana ETF, a leveraged fund designed to offer amplified returns or losses. Both ETFs will begin trading under the SOLZ and SOLT tickers on Nasdaq.

At the time of writing, Solana is trading at $136.09, up 2.5% from yesterday’s price but slightly lower than its high earlier in the day. The launch of Solana ETFs is seen as a significant step for the altcoin, providing increased exposure and access to its future price movements.

Market Reaction and Caution Moving Forward

While Bitcoin and Solana remain in the spotlight, it’s important to acknowledge the broader market sentiment. The optimism from Jerome Powell’s comments, while boosting the stock and crypto markets in the short term, may not account for the longer-term impacts of tariffs and other economic policies. Traders should remain cautious as they continue to navigate a volatile and unpredictable market.

The recent developments show that crypto markets are still very much in flux, with changes in Fed policy and tariffs creating significant ripple effects. However, for now, market participants are focused on immediate opportunities, with Bitcoin holding steady above the $80,000 mark and Solana showing positive momentum from its ETF news.

Disclaimer: This article is for informational purposes only and does not constitute investment advice. Cryptocurrencies and stocks, particularly in micro-cap companies, are subject to significant volatility and risk. Please conduct thorough research before making any investment decisions.