The price of %Bitcoin (CRYPTO: $BTC) has fallen to $67,000 U.S. after the Federal Reserve held interest rates steady and indicated that there might only be one rate cut in 2024.
The U.S. central bank elected to hold its benchmark Fed Funds rate at its current range of 5.25% to 5.50%, which is the highest level in more than 20 years.
However, the Fed also telegraphed that it now sees only one interest rate cut of 25 basis points this year, down from a previous outlook that called for three rate cuts by year’s end.
The central bank’s expectation for the Fed Funds rate at the end of 2024 is now 5.1% versus 4.6% previously.
The 2025 year-end Fed Funds forecast is now 4.1%, suggesting 100 basis points in cuts next year.
While traders and investors pushed the benchmark S&P 500 stock index to an all-time high after the latest Federal Reserve interest rate decision and commentary, crypto prices have fallen.
This is because higher interest rates are viewed as a negative for riskier assets such as Bitcoin, Ethereum and other cryptocurrencies.
Earlier on the same day (June 12), data showed that inflation in the U.S. during May grew at an annualized rate of 3.3%.
While that was lower than the 3.4% reading expected among economists, inflation in the U.S. remains above the Fed’s 2% target.
The Federal Reserve’s next decision on interest rates is scheduled for July 30. Futures traders are currently betting on a rate cut this September.
