Bitcoin Holds Strong Above $100,000 as the Fed Signals Cautious Approach to Rate Cuts

The decision comes as Bitcoin continues to trade above the critical $100,000 level, reflecting ongoing investor confidence despite macroeconomic uncertainty.

Bitcoin price sees minimal response to latest Fed decisionBitcoin price reacted calmly to the latest decision by the U.S. Federal Reserve on Wednesday, March 15. As the central bank announced it will keep interest rates on hold for now, Bitcoin price briefly dipped by 1% but quickly recovered within minutes of the announcement.

Bitcoin price dropped to a low of $101,840 following the Fed’s announcement at 2 p.m. Eastern time. However, minimal selling pressure was observed in the spot market, and Bitcoin price swiftly rebounded. At the time of writing, BTC/USD is trading at $102,100, down 0.7% on the day.

Bitcoin price 1-hour chart. Source: TradingViewRelative to other cryptocurrency markets, Bitcoin performed better than most major altcoins, which saw steeper declines. XRP and Solana both faced substantial losses, dropping by 3% and 2.5%, respectively, over the same time frame.

Cryptocurrency markets saw broad declines following the Fed announcement.Despite short-term fluctuations, Bitcoin has managed to maintain a foothold above $100,000, a critical psychological and technical support level that traders closely observe. After briefly dipping below the round-figure level on Tuesday, March 14, Bitcoin price quickly rebounded, reflecting strong buying interest at lower price points.

Bitcoin price closed above $100K on lower time frames. Source: TradingViewMarkets had largely anticipated the Fed’s decision to hold rates. However, Federal Reserve Chair Jerome Powell’s cautious approach toward potential rate cuts left investors assessing the likelihood of easing later in the year.

In its latest policy statement, the Federal Open Market Committee, or FOMC, also removed previous language acknowledging progress on inflation. The central bank now states that inflation "remains well below 2% and labor market conditions have improved in recent months."

Powell noted that the Fed will continue to monitor economic indicators, particularly labor market strength and inflation trends, before making any decisions on future rate cuts. While markets had expected a hold on rates, Powell’s cautious approach has left investors weighing the likelihood of easing later in the year.

Bitcoin price reacted calmly to the latest Fed decision, but what’s next?The broader economic direction remains complex. The first FOMC meeting under President Donald Trump’s new administration has added uncertainty as the government considers policy shifts that could impact market sentiment.

Proposed 25% tariffs on Mexico and Canada, along with unresolved federal spending issues, contribute to a less predictable economic trajectory. Meanwhile, markets are also keeping an eye on the upcoming meeting between Trump and Chinese President Xi Jinping at Mar-a-Lago later this week.

Investor expectations for monetary easing also remain in flux throughout the year. The CME FedWatch tool now indicates a nearly even probability of either a 25-basis-point rate cut in either June or July. However, with markets currently pricing in a maximum of two potential rate reductions in 2025, sentiment remains cautious.