Federal Reserve Leaves Rates Unchanged; Bitcoin Flat at $34.5K

Market participants will now turn to Fed Chair Jerome Powell's post-meeting press conference to glean insight into the future path of U.S. central bank policy.

AccessTimeIconNov 1, 2023 at 6:05 p.m. UTC
Updated Nov 2, 2023 at 3:00 p.m. UTC

In a widely anticipated move, the U.S. Federal Reserve's Federal Open Market Committee (FOMC) Wednesday left its benchmark fed funds rate range steady at 5.25%-5.50%.

"Tighter financial and credit conditions for households and businesses are likely to weigh on economic activity, hiring, and inflation," said the FOMC in its policy statement. "The extent of these effects remains uncertain. The Committee remains highly attentive to inflation risks."

The central bank's nod towards risks to economic growth is nearly identical to that of its previous policy statement in September, suggesting that it will be incoming data that will decide whether there's another pause or rate hike at its December meeting.

Bitcoin (BTC) was little changed in the moments following the news, trading just above $34,500, CoinDesk data shows.

While bitcoin has been known to experience a large amount of intra-day volatility during FOMC decision days, that impact has been diminishing with the Fed likely nearing the end of its rate hike cycle, according to crypto analytics firm K33 Research.

"Fed interest rate decisions have seen reduced medium-term directional impact on BTC as correlations reign moderate, K33 analysts Anders Helseth and Vetle Lunde noted in a market preview Tuesday. "We still expect a significant intraday volatility contribution from the Wednesday FOMC, as the market typically reacts with bursts of strongly correlated and heightened volatility during the FOMC hours."

Market participants will now look to Fed Chairman Jerome Powell’s imminent press conference for clues about the future path of U.S. central bank policy.

Over the past few weeks, Fed speakers have hinted that they are leaning towards one more rate hike before ending what's been a historic rate hike cycle.

Edited by Stephen Alpher.


Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

CoinDesk is an award-winning media outlet that covers the cryptocurrency industry. Its journalists abide by a strict set of editorial policies. In November 2023, CoinDesk was acquired by the Bullish group, owner of Bullish, a regulated, digital assets exchange. The Bullish group is majority-owned by Block.one; both companies have interests in a variety of blockchain and digital asset businesses and significant holdings of digital assets, including bitcoin. CoinDesk operates as an independent subsidiary with an editorial committee to protect journalistic independence. CoinDesk employees, including journalists, may receive options in the Bullish group as part of their compensation.

Krisztian  Sandor

Krisztian Sandor is a reporter on the U.S. markets team focusing on stablecoins and institutional investment. He holds BTC and ETH.

Stephen  Alpher

Stephen Alpher is CoinDesk's managing editor for Markets. He holds BTC above CoinDesk’s disclosure threshold of $1,000.