The announcement was widely expected, though it may diminish optimism among crypto and stock investors for an imminent rate reduction. The Federal Reserve opted to keep its interest rate benchmark between 5.25% to 5.5% during the Federal Open Market Committee Meeting (FOMC) on Wednesday, following a significant 6% decline in Bitcoin's value earlier the same day.

Shortly after the announcement, Bitcoin's value increased from $57,300 to $57,700 within five minutes. According to a statement released by the central bank, it intends to decrease the pace at which it sells US Treasury securities, commencing in June by lowering the monthly redemption limit from $60 billion to $25 billion. Market participants largely anticipated the Fed's decision to maintain the interest rate at 5.25%, with expectations of possible cuts possibly occurring in Q4. However, statements from the central bank affirmed concerns that the need for higher rates might extend to combat persistent nationwide inflation levels of over 3%.

"The Committee does not foresee a reduction in the target range until there is greater confidence that inflation is easing towards 2% sustainably," stated the Fed. The economy has exhibited unexpected resilience, with Bloomberg Intelligence data indicating that 81% of S&P 500 companies that have disclosed their Q1 earnings have exceeded their first-quarter projections. Bitcoin's value is susceptible to the impact of central bank policies and broader macroeconomic liquidity conditions. Analysts such as BitMEX co-founder Arthur Hayes are optimistic that Bitcoin will surpass $100,000 as central bank balance sheets continue expanding.