Bitcoin holds near $81,000 following Federal Reserve rate decision

Bitcoin traded near the $81,000 level after the Federal Reserve decided to maintain its benchmark interest rate target range between 3.75% and 4%. Bitcoin Magazine, Decrypt, and Altcoin Buzz reported that the central bank kept rates unchanged on Wednesday. Bitcoin Magazine and Decrypt noted that the asset traded above $81,500 following the announcement, while showing price volatility around $81,000. [1][5][6][8]

The monetary policy decision passed by a 10-2 vote. Bitcoin Magazine, Decrypt, and The Defiant reported that Federal Reserve Governor Lisa Cook and Cleveland Fed President Beth Hammack dissented from the majority. Both officials voted in favour of a quarter-point rate increase. The Defiant added that this split vote followed a unanimous rate hike by the central bank in September. [1][6][7]

Bitcoin Magazine highlighted that the joint dissent by a Fed governor and a regional bank president on the same side is the first such occurrence since 1992. Prior to the policy announcement, CoinDesk reported that Bitcoin had risen above $81,000, while Bitcoin News noted that the asset had previously stalled at $80,000 amid market uncertainty regarding the central bank meeting. [1][2][4]

The cryptocurrency trading price remained close to institutional cost benchmarks leading into the decision. Pluang reported that Bitcoin traded just below the $81,500 average cost basis of United States spot Bitcoin exchange-traded funds. TradingNEWS similarly noted that Bitcoin traded at $81,385, placing it $115 below that average cost threshold. [9][10]

Bitcoin is a cryptocurrency and digital asset that uses cryptography for management rather than relying on central authorities. The Federal Reserve System serves as the central banking system of the United States, established in 1913 to manage monetary policy. Decrypt reported that market participants are now evaluating whether a rate hike remains possible at the upcoming December meeting. [6][11][12]