The Federal Reserve maintains interest rates unchanged, Bitcoin surpasses 35K, a first since the collapse of LUNA.

The Federal Reserve in the United States kept interest rates unchanged as expected yesterday. Although the post-meeting statement indicated a strong economy and did not rule out further rate hikes in the future, Chairman Powell's remarks after the meeting still boosted the market. The three major U.S. stock indices closed higher, and U.S. bond yields fell. Bitcoin also officially surpassed the $35,000 mark, a level not seen since the collapse of LUNA last year.

The Federal Reserve Maintains Interest Rates Unchanged for the Second Time

The Federal Reserve members unanimously agreed to keep the federal funds rate at a target range of 5.25%-5.5%, in line with market expectations. This marks the second time the Federal Reserve has maintained interest rates unchanged after raising them 11 times, including 4 rate hikes in 2023.

Federal Reserve Chairman Powell stated in a press conference after the meeting:

There is still a long way to go to bring inflation down to 2%. However, the Federal Reserve has not made any decisions regarding the December meeting.

When asked if the recent financial tightening, indicated by the rise in long-term U.S. Treasury yields affecting the tightening in the credit markets, influenced the Federal Reserve's interest rate decision this time, Chairman Powell responded affirmatively. However, he also emphasized that the Federal Reserve has not started considering rate cuts, and that will only be considered once inflation is under control.

The last interest rate meeting of the year will be held on December 12 and 13.

Bitcoin Surpasses 35K, Altcoins Also Resurging

Bitcoin has surpassed 35K, marking a first since last year's LUNA crash. The altcoin industry is also experiencing a resurgence, with Solana SOL taking the lead, achieving an astonishing 27% growth in seven days. Avalanche AVAX, Polkadot DOT, and Near Protocol NEAR have also seen increases of over 16%.