Bitcoin Dips to $88k as Federal Reserve Holds Policy Steady

TL;DR

• BTC is down 1% in the last 24 hours and is now trading around $88,200.

• The bearish performance comes as the FOMC kept rates on hold in its inaugural meeting for 2026.

FOMC Keeps Rates on Hold

The cryptocurrency market has turned bearish after Bitcoin and other leading cryptocurrencies recorded losses in the last 24 hours. 

Bitcoin hit the $90k level on Wednesday but is now trading just above $88k after losing 1% of its value. At press time, BTC is now trading at $88,190.

The bearish performance comes as the Federal Reserve held interest rates steady on Wednesday. This is in contrast to what analysts had expected, with many optimistic that the FOMC would cut rates for the first time this year. 

In its policy statement on Wednesday, the apex bank stated that,

"Job gains have remained low, and the unemployment rate has shown some signs of stabilization. Inflation remains somewhat elevated."

The policy saw the U.S. dollar remain sharply higher for the day following Tuesday’s large decline. However, Gold and Silver both hit new all-time highs of $5,600 and $120, respectively. 

With the recent policy changes, market participants are not expecting the Fed to resume rate cuts at its next meeting in March. CME FedWatch has placed the odds of a rate cut in March at just 16%, with a 30% chance in April. 

In a Telegram message, Nick Ruck, Director of LVRG Research, stated that the  U.S. Federal Reserve’s decision to hold interest rates reflects persistent inflation concerns and a stabilizing economic backdrop, likely resulting in near-term volatility for crypto markets as liquidity remains supportive.

Bitcoin’s bearish performance also saw over $346 million worth of leveraged positions wiped out in the market, led by $233 million in longs and $113 million in shorts.

Ether, the second-largest cryptocurrency by market cap, has dropped below the $3k level after losing 1.5% of its value in the last 24 hours.