The price of Bitcoin has remained relatively stable after the U.S. Federal Reserve decided to keep interest rates at their current level. The Federal Open Market Committee (FOMC) made the decision on Wednesday, which was in line with the predictions of most analysts. The federal funds rate will remain between 5.25% and 5.50%.

In a statement, the central bank said that economic activity has continued to grow at a solid pace, with job gains remaining strong and the unemployment rate staying low. Inflation has decreased over the past year but remains high. The Committee has made modest progress toward its goal of 2% inflation in recent months.

Regarding the possibility of a rate cut, the central bank said that it aims to achieve maximum employment and inflation at a rate of 2% over the long term. The Committee believes that the risks to achieving its employment and inflation goals have improved over the past year. However, the economic outlook is uncertain, and the Committee remains highly attentive to inflation risks.

The Fed's options are limited due to the threat of stagflation, which could lead to financial instability and severely impact banks, similar to past crises. James Butterfill, Head of Research at CoinShares, said that the Fed has little firepower if inflation rises, which could break the banking sector again and cause problems in other areas of the economy at a time when it is already in a weakened state.

Matt Prusak, CEO of Ionic Digital, said that as the Fed attempts to engineer a soft landing, any material Bitcoin drawdowns are likely attractive accumulation opportunities for long-term investors.

Major stock indices held steady after the Fed's decision to keep rates steady. During mid-day trade in the U.S. on Wednesday, the S&P 500 gained 1%, and the Nasdaq Composite rose 1.7%. The Dow was up less than 1%. The CBOE Volatility Index (VIX), which measures the expected volatility of the S&P 500 index over the next 30 days, fell 3.5% to 12.40 points. Gold increased 0.5% over the past 24 hours to $2,327.42 per ounce. Bitcoin traded around $69,159.19 at publication time, up 3.47% over the past day.

Bitcoin is a decentralized cryptocurrency that was created in 2009 by an unknown person or group of people using the pseudonym Satoshi Nakamoto. It is based on a decentralized, peer-to-peer network and blockchain technology, allowing users to securely and anonymously send and receive transactions without intermediaries.

Bitcoin runs on a decentralized, peer-to-peer network, making it possible for individuals to conduct transactions without intermediaries. Transactions are transparent and secure thanks to the underlying blockchain technology, which stores and verifies recorded transaction data. Miners validate transactions by solving complex mathematical problems with computational power. The first miner to find the solution receives a cryptocurrency reward, thus creating new Bitcoins. Upon validation, the data is added to the existing blockchain, and it becomes a permanent record.

Bitcoin provides an alternative way to transact that is transparent and secure, redefining traditional finance. It has created a global community and given birth to an entirely new industry of millions of enthusiasts who create, invest in, trade, and use Bitcoin and other cryptocurrencies in their everyday lives.

The emergence of the first cryptocurrency has created a conceptual and technological basis that subsequently inspired the development of thousands of competing projects. The entire cryptocurrency market, now worth more than $2 trillion, is based on the idea realized by Bitcoin: money that can be sent and received by anyone, anywhere in the world without reliance on trusted intermediaries, such as banks and financial services companies.

Thanks to its pioneering nature, Bitcoin remains at the top of this energetic market after over a decade of existence. Even after Bitcoin has lost its undisputed dominance, it remains the largest cryptocurrency, with a market capitalization that surpassed the $1 trillion mark in 2021, after Bitcoin's price hit an all-time high of $64,863.10 on April 14, 2021. This is owing in large part to growing institutional interest in Bitcoin and the ubiquitousness of platforms that provide use-cases for BTC: wallets, exchanges, payment services, online games, and more.