Bitcoin Rallied with the Fed, But Analysts Warn: Be Careful! - Coin Bulletin

Bitcoin (BTC) After the Fed kept interest rates steady, it rose to levels around 87 thousand dollars, while analysts warn to be cautious.

The US Central Bank (Fed), during the meeting it held yesterday, decided to keep the interest rate unchanged, providing the long-awaited decision to the markets. This situation created a positive impact, especially in the cryptocurrency market. Bitcoin rapidly gained value following this development, climbing to levels of 87 thousand dollars. However, experts indicate that this rise should not be evaluated too optimistically.

Ritholtz Wealth Management's chief market strategist Callie Cox stated that the Fed's interest rate cuts could have negative effects on the labor market and could put pressure on the stock markets. Cox noted that as the Fed reaches its targeted inflation levels, the "soft landing" has come to an end and there could be a challenging economic process ahead. In this context, she expressed that although keeping interest rates steady could boost Bitcoin prices, economic uncertainties and potential increases in unemployment could pose risks.

On the other hand, economist Mohamed A. El-Erian warned about the Fed's "transitory" inflation statements. In particular, the remarks by Fed Chair Jerome Powell stating that the impact of tariffs on prices is "one-off" led to El-Erian's criticisms. The economist stated, "The Fed should have been more cautious after its past major policy mistakes. It is too early to say anything definitive about whether inflation is transitory or not,".

In light of these developments, while there is short-term optimism for Bitcoin and the cryptocurrency market in general, experts warn investors to be cautious. It is stated that volatility may increase in cryptocurrencies, especially as economic uncertainties persist.