Bitcoin (BTC) surged past $104,000 after the Wednesday FOMC meeting and the Fed chose to hold rates steady, with Powell tossing a few measured words about crypto into the mix.
The 2.8% gain for BTC
Bitcoin
0.33%
Bitcoin
BTC
Price
$64,348.75
0.33% /24h
Volume in 24h
$12.43B
Price 7d
was held through Thursday morning. Meanwhile, Ether and XRP barely moved, watching from the sidelines as traders chewed on the Fed’s latest signal.
But according to others, the bears say Bitcoin is now more limp than an 80-year-old man’s junk. Who’s telling the truth?
For the first time ever in Bitcoin's 16 year history, the epoch-over-epoch (EOE) growth has fallen below +100%. Pack it up, fellas. pic.twitter.com/JzQzKDewPA
— Wicked (@w_s_bitcoin) January 28, 2025
Powell Addresses Crypto Regulation at FOMC
The Fed kept interest rates on hold after the FOMC, with Powell signaling no rush to cut until inflation cools further. He asked about crypto, but he didn’t break new ground and left the door open.
“Banks are perfectly able to serve crypto customers as long as they understand and can manage the risks,” Powell said. “A greater regulatory apparatus around crypto from Congress would be very constructive.”
INCUMBENT COMMERCE SECRETARY HOWARD LUTNICK: "Every time #Bitcoin dips, I’ll be buying." 🚀 pic.twitter.com/63ePSHAxks
— Simply Bitcoin (@SimplyBitcoinTV) November 24, 2024
Powell’s remarks come at a pivotal time, as speculation mounts over how a second Trump administration might reshape crypto regulation. The former president has leaned into the sector, fueling expectations that friendlier policies are coming.
Bitcoin hit a record $109,241 ahead of Trump’s inauguration but has since dipped slightly.
Still, BTC has risen over 50% since his November election win, sparking debate over its trajectory. Some, like Bitcoin mogul Arthur Hayes, see a market ripe for a pullback, while others point to growing U.S. interest in crypto as fuel for sustained growth.
Tesla’s Bitcoin Windfall Saves TSLA Stock After Earnings Data Spooks Market
Several seismic moves in the crypto world are sparking fresh optimism:
- CME Group Inc. is opening the door for retail traders on Robinhood Markets Inc., offering Bitcoin and Ether futures.
- Investment firms are testing the SEC’s limits, with some even filing for memecoin ETFs.
- On Capitol Hill, Howard Lutnick, Trump’s pick for Commerce Secretary and a vocal Bitcoin advocate, is about to be confirmed.
In a recent article Bloomberg’s Nathan Dean sees the SEC filings as a clear signal of boundary-pushing innovation, adding, “Companies are probing the SEC’s boundaries, with unique filings including memecoin ETFs.”
Tesla’s Q4 earnings also boosted Bitcoin, with the company logging a $600 million gain on its 11,509 BTC stash. Thanks to a new accounting rule, Tesla now values its Bitcoin holdings at market price, bringing the total to $1.19 billion.
This change results from the Financial Accounting Standards Board’s December 2023 decision, which allows companies to adjust crypto values quarterly.
Final Thought: What’s Next for Bitcoin?
Bitcoin sits at a crossroads, caught between a crabby Fed, institutional adoption, and upcoming regulatory changes.
Who knows what happens next? We’ll see soon if this rally can be extended.
EXPLORE: 15 New & Upcoming Coinbase Listings to Watch in 2025
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