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US Fed Leaves Rates Unchanged as Bitcoin and Co Hold Steady
- Crypto markets remain flat as investors await developments regarding Middle East tensions and uncertainty over US involvement in Israeli-Iranian conflict.
- The Federal Reserve maintained interest rates and suggested cuts may come in late 2025, with Chair Powell warning that Trump’s tariffs could drive meaningful inflation.
- Bitcoin ETFs have recorded seven consecutive days of net inflows totalling 1.22 million BTC, primarily led by BlackRock’s strong performance.
- Despite significant institutional Bitcoin purchases from companies like The Blockchain Group and Prenetics Global, Bitcoin’s price remains stagnant due to underlying selling pressure from long-term holders.
Crypto markets are trading sideways as investors hold their breath over rising tensions in the Middle East.
US President Donald Trump is leaving everyone in the dark regarding what his next steps are and whether the US will join Israel in its attacks on Iran – potentially escalating the situation further and causing havoc in markets.
Asked whether he would, Trump gave his usual vague response:
I may do it. I may not do it. I mean, nobody knows what I’m going to do.
US President Donald Trump Related: Trump’s Crypto Push May Lock In US Dollar Supremacy, Says Treasury Chief
Fed Holds Steady, Cites Tariffs as Reason
Meanwhile, the US Federal Reserve held rates steady and hinted borrowing costs could decrease in late 2025. Fed Chair Jerome Powell, however, dampened expectations of cuts, saying that “meaningful” inflation is likely – caused by higher prices due to Trump’s tariffs.
No one holds these […] rate paths with a great deal of conviction, and everyone would agree that they’re all going to be data-dependent.
Fed Chair Jerome Powell He added if it weren’t for the tariffs, rate cuts would have been in order as inflation has been tracking downwards.
However, if the tariffs are implemented, they will increase costs, Powell insisted, saying that everyone he knows “is forecasting a meaningful increase in inflation in coming months from tariffs, because someone has to pay for the tariffs”.
For the time being, therefore, it’s a wait-and-see approach:
We’ll make smarter and better decisions if we just wait a couple of months or however long it takes to get a sense of really what is going to be the pass-through of inflation.
Fed Chair Jerome Powell Despite these market uncertainties institutional interest in Bitcoin isn’t slowing down. The US spot Bitcoin exchange-traded funds (ETFs) for example have seen seven consecutive days of net inflows – mainly driven by strong performance by BlackRock’s IBIT.
The funds now hold 1.22 million BTC (5.81 per cent of all BTC), with IBIT holding 680k (or 3.24 per cent).
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Strong Inflows, Yet Price Won’t Move
There are also several organisations scooping up the OG coin – and no it’s not just Michael Saylor’s Strategy or Japanese Metaplanet.
European-based The Blockchain Group just announced a €17 million (AU$30 million) purchase of 182 Bitcoin, bringing its holdings to 1,653 BTC.
Health sciences firm Prenetics Global Limited has also bought Bitcoin worth US$20 million (AU$30.8 million) or 187.42 BTC. Executives said they have been inspired by Saylor’s buying spree.
Japanese fashion label ANAP also bought 31.2 BTC worth ÂĄ479 million (AU$5.09 million).
Regardless of these bullish signals, Bitcoin’s price is stalling as underlying selling pressure – likely from long-term holders – quietly offsets new demand, according to 10X Research.
Despite billions in recent inflows, Bitcoin has struggled to rally, suggesting substantial selling is occurring beneath the surface.
10X Research Read more: Novogratz: Stablecoin Law Will Open the Floodgates for Wall Street Crypto Invasion
Author
Aaron Feuerstein
Aaron Feuerstein is a freelance writer based in Melbourne. His focus is on decentralised finance and the regulatory space surrounding blockchain. He holds a Master's in Accounting. When he is not studying the latest legal case, he enjoys his time as a modest but eager hobby cook.
