Federal Reserve Holds Rates Steady, Dashing Early 2024 Cut Hopes as Bitcoin (BTC) Stalls

The U.S. Federal Reserve has maintained its current benchmark interest rate, signaling a more cautious approach than many investors anticipated. Market expectations for an imminent rate cut in early 2024 have significantly diminished following the central bank's latest policy announcement. This shift in monetary policy outlook is contributing to increased volatility in risk assets. Concurrently, the price of Bitcoin (BTC) has entered a consolidation phase, struggling to find upward momentum amid the changing macroeconomic landscape. Analysts note that the crypto market's sensitivity to traditional finance cues remains high, with the Fed's "higher for longer" stance applying pressure. The focus now shifts to upcoming economic data for clues on the future path of interest rates and its impact on digital assets like Bitcoin and Ethereum (ETH).