Bitcoin (BTC) price surges above $85,000 as FOMC meeting concludes with interest rates unchanged

This decision has contributed to a positive sentiment in the crypto space, marked by a significant increase in Bitcoin's price

Crypto markets are displaying resilience with the latest developments, notably following the Federal Open Market Committee (FOMC) meeting, saw the U.S. central bank opt to keep interest rates steady in the range of 4.25%-4.50%. This decision has had a positive impact on the crypto sphere, leading to a substantial surge in Bitcoin's price.

Rising 4.5% in just 24 hours, Bitcoin is now trading at $85,500—its highest level since March 9, according to CoinDesk data from Thursday morning.

This surge has also pushed the broader market up, with the CoinDesk 20 index—a benchmark of the top 20 cryptocurrencies—climbing 6%. Among the frontrunners are Ether (ETH) and Solana (SOL), both displaying a 7% increase.

Further highlighting the positive market breadth, Ripple’s XRP token saw a 10% surge following CEO Brad Garlinghouse's statement regarding the potential dismissal of the case against Ripple by the U.S. Securities and Exchange Commission (SEC).

In the realm of crypto-related stocks, companies like Bitdeer (BTDR) and Core Scientific (CORZ) have experienced notable gains, with 10% and 8% surges respectively.

The rise in Bitdeer's stock is linked to advancements in its ASIC manufacturing process and additional support from Tether, which has reportedly increased its stake in the company to 21%.

On the other hand, Core Scientific's gains might be linked to its primary client, AI firm CoreWeave, which recently filed for an IPO. Both companies have seen significant declines in their stock prices since earlier this year—over 61% for Bitdeer and more than 53% for Core Scientific.

During his remarks following the FOMC meeting, Federal Reserve Chair Jerome Powell addressed inflation concerns, suggesting that tariff-related inflation might be transitory. However, this assertion has been met with skepticism from some economists.

Mohamed A. El-Erian expressed concerns about the Fed's approach, stating that the reliance on the term "transitory" in describing inflation could be premature, especially given the mistakes of past policy decisions.

In related news, the precious metals market has also seen movement, with gold prices climbing above $3,050 after previously exceeding the $3,000 threshold.

According to analysts, including Callie Cox from Ritholtz Wealth Management, the ongoing narrative from the Federal Reserve suggests that any future rate cuts might have a negative impact on stock markets.

Cox noted that the Fed appears increasingly uncomfortable with the current trajectory towards a neutral rate as they near their inflation targets, indicating a possible end to the era of ‘soft landing’ for economic conditions.