Let's analyze and predict the future of this cryptocurrency.

Since the Fed announced that it would keep interest rates unchanged and continue its tightening liquidation policy, we have seen some volatility in Bitcoin prices. Although the price initially fell slightly, it has since recovered strongly. This shows that while major market fluctuations can put pressure on Bitcoin, it is still XEM by many investors as a ‘safe’ investment in an inflationary environment.

Experts say that while high interest rates may reduce the appeal of Bitcoin compared to other yielding assets, it is macroeconomic instability that drives demand for Bitcoin as a 'digital gold'. In fact, during the crypto winter of 2022 and late 2024, Bitcoin's market Capital dominance (BTC ) increased as monetary conditions tightened, suggesting that Bitcoin held its value better than the rest. In particular, Bitcoin had an impressive growth year in 2024 when the price broke its historical high, surpassing the $100,000 mark in early December 2024, thanks to expectations that the Fed would slow down in raising interest rates.

Looking ahead, even though the Fed is expected to only gradually cut interest rates, this could still be a tailwind for Bitcoin. A slowdown in interest rate hikes may not immediately trigger a price boom, but it will certainly help alleviate the downward pressure on Bitcoin and could even support a new wave of price increases once the global economy stabilizes. Not to mention, with increased mainstream adoption and integration into the mainstream financial system, Bitcoin has the potential to grow significantly in the coming period.

In summary, the Fed’s latest policies in 2025 are reshaping the financial and cryptocurrency landscape. The Fed’s pause in rate hikes and gradual rate cuts show that controlling inflation remains a top priority. This brings macroeconomic stability but also somewhat limits the excitement of the risky asset market. However, the medium- to long-term outlook remains positive as inflation remains under control and monetary policy gradually shifts to support growth. For investors, this period requires caution and a long-term vision – as advised by the advice that patience and maintaining faith in fundamentals will help get through this volatile period.

In the current context, Bitcoin is not only a part of the cryptocurrency market but also an indispensable part of the global financial picture. With changes in Fed policy, Bitcoin will likely continue to be a bright spot on the investment map of many people.

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