Analysts expect Bitcoin price recovery after Fed leaves rates unchanged

Bitcoin price shows signs of a recovery, but analysts are uncertain whether the strongest part of the correction has passed.

Bitcoin (BTC) price recovered on May 2 after the United States Federal Reserve decided to leave interest rates unchanged and dampened investors’ hope for rate cuts in 2024. 

The Federal Open Market Committee (FOMC) minutes released on May 1, the Fed said interest rates would stay at 5.25%–5.50%, adding that it would need “greater confidence that inflation is moving sustainably toward 2%” before cutting rates.

The Fed also revealed plans to slow the pace of its balance sheet reductions – the so-called quantitative tightening (QT) – from $60 billion per month to just $25 billion per month.

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