Fed decision: Bitcoin climbs to $99,000

While the Federal Reserve yesterday announced it will not cut the US interest rate for now, Bitcoin ended up more than two percent.

While the Federal Reserve yesterday announced it will not cut the U.S. rate for now, Bitcoin closed above the 2% gain mark. That puts the $100,000 level closer to the radar for investors.

The decision by the U.S. central bank comes despite mounting political pressure from former President Donald Trump. He had warned a few weeks ago that he could push Fed Chair Jerome Powell out if he thought the rate actions were too slow.

Meanwhile, Bitcoin is benefiting from positive developments in the United States. After New Hampshire, Arizona has now also announced plans to build a strategic BTC reserve. That bolsters investor confidence in the crypto as an alternative savings asset.

Market sentiment is also moving higher. The so-called Fear and Greed Index rose to 65, signaling greed among traders. That upbeat tone is echoed in altcoins too. Ethereum rose almost 4%, Solana gained over 3%, and XRP climbed 2%. Big movers include EOS, up 20%, and meme coin MOG, which jumped 35%.

At the same time, the global economy remains on edge as it eyes new trade deals with the United States. The Wall Street Journal reports Trump plans to unveil an agreement with the United Kingdom later this week.

On Thursday, the economy will offer fresh signals. The Wall Street Journal will publish data on new unemployment claims and a New York Fed survey on inflation expectations.

Saturday brings China into the spotlight, which will release April inflation numbers. If consumer prices have again dipped, China’s central bank could consider extra stimulus measures.

In this broad economic field, investors are once again reminded of the old market adage: “Sell in May and go away.” But whether that applies to Bitcoin remains to be seen.