Bitcoin Volatility Returns After Fed Holds Interest Rates Steady

Today's meeting was described as the most unpredictable in at least six years. Although there was some uncertainty about the monetary direction the United States Federal Reserve will take following the July FOMC meeting, the central bank approved with a 9-3 vote to maintain the interest rates at 3.50% to 3.75%. All eyes have turned to the incoming press conference by the new Fed Chair, Kevin Warsh, as investors anticipate which way he will lean. “The Committee decided to maintain the target range for the federal funds rate at 3-1/2 to 3-3/4 percent, in support of the Federal Reserve’s dual mandate. The Committee is continuing its policy of maintaining ample reserves in the banking system,” reads the statement. As reported earlier today, this meeting was described as the most unpredictable since the COVID-19 pandemic broke out in March 2020. The reason for this is that all meetings since then had a 99% agreement about the outcome ahead of their conclusion. In contrast, futures markets and prediction platforms had assigned a 30%-38% probability for a rate hike for today’s meeting. Investors apparently had de-risked from more volatile assets like bitcoin ahead of the event today, as t...