Bitcoin prices remained stable near $105,000 early Thursday after the Federal Reserve announced it would keep interest rates steady and raised inflation forecasts. The cryptocurrency initially dipped from a session high of $105,500 to $103,000 but recovered to close with a modest 0.2% gain at $104,900.
Fed Chair Jerome Powell noted that tariffs are expected to drive inflation higher in the coming months, signaling a sustained period of elevated prices.
Despite a retreat in most stock indices, the US dollar strengthened due to expectations of higher rates maintained over a longer term. Bitcoin’s resilience amid interest rate sensitivity raised questions about underlying factors supporting the rally.
A key development may be the recent passage of the GENIUS bill in the US Senate. This legislation represents a significant move toward integrating stablecoins into mainstream financial systems, allowing them to coexist alongside traditional fiat currencies within banks, fintech firms, and retailers.
Senator Kirsten Gillibrand, a principal supporter, stated the bill aims to protect consumers, foster innovation, and uphold the US dollar’s dominance. While the legislation does not directly address Bitcoin’s regulatory status, proponents view it as a positive step for the broader crypto industry.
If approved by the House, the bill would permit businesses to issue stablecoins and incorporate them into payment systems, sparking speculation about major companies like Amazon potentially entering the crypto space.