# Bitcoin Surges as Fed Maintains Interest Rates

*Author: Kazu Umemoto*
*Published: Jan 30, 2025*
*Source: https://www.bankless.com/read/bitcoin-surges-as-fed-maintains-interest-rates*

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Bitcoin's price experienced significant volatility following the Federal Reserve's decision to keep interest rates unchanged, despite President Trump's calls for a rate cut. 

## **What’s the Scoop?**
- **Fed's Decision:** The Federal Reserve opted to maintain the federal funds rate at 4.25% to 4.50%, citing progress on inflation and labor market rebalancing.
- **Market Reaction:** Bitcoin's price fluctuated in response, but later rallied to $105K following the Fed meeting.
- **Trump's Stance:** President Trump has been vocal about his desire for lower interest rates to stimulate economic growth, contrasting with the Fed's more cautious approach. 

## **Bankless Take**
The Fed's decision to maintain current interest rates, despite political pressure, underscores a commitment to measured economic policy. For crypto investors, this highlights the importance of monitoring central bank actions, as monetary policy continues to play a pivotal role in market dynamics.
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