Bitcoin Price Surpasses $97K Amid Cautious Fed Outlook

Bitcoin Price Movement and Market Analysis

Bitcoin price has moved slightly higher $97K in the past 24 hours. Investors are analyzing the Federal Reserve’s January meeting minutes, which highlight concerns about inflation risks. The cryptocurrency rose 1.1% to $97,188.0 by 10:29 ET (15:29 GMT). However, it remains within a tight trading range, awaiting fresh catalysts.

On Wednesday, Bitcoin gained nearly 1% following renewed diplomatic discussions between the U.S. and Russia. Reports suggested ongoing talks to resolve the Russia-Ukraine conflict, slightly boosting market optimism. Yet, Bitcoin struggled to sustain upward momentum, reflecting weak overall sentiment.

Federal Reserve Maintains Cautious Stance on Inflation

Federal Reserve officials emphasized that further inflation progress is required before considering additional rate cuts. The January meeting minutes revealed that most policymakers prefer a careful approach to adjusting interest rates. They believe maintaining a restrictive stance is necessary due to economic uncertainties and inflation risks.

Officials stated that monetary policy decisions are not predetermined. They noted that, as long as the economy remains near maximum employment, they will assess inflation progress before making further adjustments. After cutting its benchmark rate by a full percentage point in 2024, the Fed left it unchanged last month at 4.25% to 4.5%.

Despite a slight price increase today, Bitcoin’s overall performance remains muted. The broader financial market is grappling with mixed economic signals. Rising concerns about potential U.S. tariffs on auto, semiconductor, and pharmaceutical imports have added pressure on risk assets like Bitcoin.

Crypto Market Faces Low Trading Volumes

Trading volumes in the cryptocurrency market have been subdued. The lack of participation has kept Bitcoin trapped in a narrow range. Technical analysts suggest that a breakout in either direction could provide the necessary momentum to revive market activity.

Analysts believe that Bitcoin is in a holding pattern. Investors are waiting for clearer signals before committing to larger positions. Until then, Bitcoin’s price movement may remain constrained.

SEC Forms New Division to Tackle Crypto and AI Fraud

The U.S. Securities and Exchange Commission (SEC) has launched the Cyber and Emerging Technologies Unit (CETU). This new division will replace the Crypto Assets and Cyber Unit, which was created in 2022. CETU aims to protect investors from fraudulent activities in cryptocurrency and artificial intelligence.

Laura D'Allaird, a longtime SEC official, will lead the unit. CETU will focus on preventing fraud involving AI, machine learning, and blockchain technology. Acting SEC Chair Mark Uyeda stated that the unit will facilitate market efficiency and investor protection while ensuring innovation continues to grow.

Altcoins Show Limited Gains

Altcoins experienced mixed performance on Thursday. Ether rose 0.9% to $2,731.27, while XRP gained 3% to reach $2.69. Solana climbed 1.3%, and Cardano advanced 3.6%. Polygon edged up 0.2%.

Among meme tokens, Dogecoin traded flat, while $TRUMP slipped 0.8%.

Bitcoin remains in a consolidation phase. The market is closely monitoring inflation trends, Fed decisions, and geopolitical developments for potential breakout opportunities.

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