Bitcoin Dips Under $64K As Fed Hints At Tough Inflation Stance

Bitcoin climbed above $64,400 on Wednesday after the Federal Reserve decided to keep its benchmark interest rate steady between 3.50 percent and 3.75 percent. The initial market reaction was positive as traders welcomed the pause in rate hikes.

The rally proved short lived when Federal Reserve Chair Kevin Warsh started his press conference. He stated that there is no soft inflation target, which cooled trader enthusiasm quickly. Bitcoin gave up its gains and slipped to trade just under the $64,000 mark.

Even with the pullback, the coin is still showing a modest gain of about one percent over the recent tracking period. Traders are now watching incoming economic data closely to see how the central bank might adjust rates at the next meeting.