Bit recovered to $85,000, driven by the Federal Reserve and the rise in the stock market, but an analyst advised caution.

Gold remains the star of this cycle, breaking through $3,050 per ounce to set a new high.

Key Information:

• After the Federal Reserve meeting, the crypto market showed a positive trend, with the Federal Reserve maintaining the federal funds rate range at 4.25%-4.50%.
• In the past 24 hours, Bit has risen 4.5%, while XRP has become the largest gainer among major cryptocurrencies due to the U.S. Securities and Exchange Commission's (SEC) decision not to appeal its lawsuit against Ripple.
• Although the market reacted positively to the FOMC meeting, some market commentators remain skeptical, questioning the Federal Reserve's confidence that tariff-related inflation is only a temporary phenomenon.

The crypto market saw a slight increase after the U.S. Federal Open Market Committee (FOMC) meeting today, with the Federal Reserve deciding to keep rates unchanged at 4.25%-4.50%.

Bit (BTC) has risen 4.5% in the past 24 hours, with the current trading price reaching $85,500, the highest level since March 9.

The CoinDesk 20 index (an index of the top 20 cryptocurrencies by market capitalization, excluding stablecoins, meme coins, and exchange tokens) rose 6%. Ethereum (ETH) and Solana (SOL) both surged 7%, while XRP rose 10% after Ripple CEO Brad Garlinghouse announced that the SEC plans to withdraw its lawsuit against Ripple.

Crypto-related stocks also performed relatively well, particularly Bit mining companies Bitdeer (BTDR) and Core Scientific (CORZ), which rose 10% and 8% respectively on the day. Bitdeer's rise may have been driven by its ASIC manufacturing technology advancements and the news that stablecoin giant Tether has increased its stake in the company to 21%.

Meanwhile, Core Scientific may be benefiting from its main client, the artificial intelligence company CoreWeave, filing for an initial public offering (IPO) earlier this month. However, the stock prices of these two companies have still fallen by more than 61% and 53% respectively since January 2023 and November 2022.

Federal Reserve Chair Jerome Powell stated that tariff-related inflation may be temporary and that the risk of recession remains relatively low. Although the market reacted positively to the meeting, with the Nasdaq, S&P 500, and Dow Jones indices all rising more than 1% - market commentators are not entirely convinced.

Economist Mohamed A. El-Erian posted on X platform, saying, "The word 'temporary' is back at the Fed, with Chair Powell describing the price impact of tariffs as a one-off event. I had hoped that, after the major policy mistakes of the early 2000s, some Fed officials would show more caution in the face of the current uncertainties. To assert now that the inflation impact is temporary is premature."

Gold continued to rise after breaking through $3,000 on Tuesday, setting a new record above $3,050 today. Callie Cox, Chief Market Strategist at Ritholtz Wealth Management, stated that the Federal Reserve is signaling that any additional rate cuts may come at the expense of the stock market. "As we get closer to the Fed's inflation target, the central bank is no longer willing to easily transition to a 'neutral' policy. I would say the 'soft landing' is over," she wrote on social media.