Gold rebounds above $4,300 after Fed rate hike; dollar weakens - Spot gold recovered despite the Fed's "hawkish" outlook, while the dollar weakened slightly.
US and Chinese officials to meet in New York ahead of Summit - US Treasury Secretary Scott Bessent and Chinese Vice Premier He Lifeng will hold trade talks in New York on Sunday.
The broader cryptocurrency market also traded within a neutral-to-slightly-positive range but posted losses ahead of the Federal Reserve's decision.
Bitcoin traded within a narrow range on Thursday as markets digested the Federal Reserve's decision to raise interest rates, while investor attention also remained focused on escalating tensions in the Middle East.
The world's largest cryptocurrency rose 0.6% to $76,491.7 by 09:35 Moscow time, showing a muted reaction to the Fed's overnight rate hike.
Another negative factor for crypto markets this week was the failure of a key cryptocurrency regulation bill in the US Senate.
Fed Raises Rates; Warsh’s Comments Set a Hawkish Tone
On Wednesday, the Fed raised interest rates by 25 basis points to 4.0%, in line with market expectations.
Fed official Kevin Warsh adopted a tough stance following the regulator's decision, warning that inflation remains too high.
Although Warsh refrained from making explicit forecasts regarding future actions, markets interpreted his remarks as a signal of potential further rate hikes.
Despite Bitcoin's limited reaction to Warsh's stance, high interest rates generally weigh on cryptocurrencies by increasing the opportunity cost of investing in non-yielding speculative assets.
Easing Middle East Tensions Offer Some Relief
Bitcoin tracked a broader rally in risk markets amid a slight easing of tensions in the Middle East; according to Reuters, the US held talks with the Iran-backed Houthi rebels in Yemen. The Houthis, who stepped up attacks on Saudi Arabia last week, assured Washington they would uphold the 2025 truce and promised not to target American or Israeli vessels.
Oil prices fell sharply on Wednesday and Thursday; reports indicate that Saudi Arabia has begun rerouting crude oil shipments via Oman, a move that could help mitigate global supply disruptions.
Nevertheless, markets remained cautious about a potential renewed surge in oil prices, as tensions between the US and Iran stayed high and the Houthis continued their standoff with Riyadh.
Crypto market today: Altcoins recover after the failure of the Clarity Act
The broader cryptocurrency market rebounded on Thursday following losses triggered by the failure of the Clarity Act bill in the US Senate.
The bill, aimed at establishing a regulatory framework for cryptocurrencies in the US, has now been shelved indefinitely, depriving crypto markets of the regulatory legitimacy it could have provided.
However, several figures in the crypto industry stated that US regulators—specifically the SEC and the CFTC—could still adopt comprehensive rules for cryptocurrency regulation.
Ether, the world's second-largest cryptocurrency, rose 1.4% to $2,441.59, while XRP gained 0.3%.
Solana rose 2.4%, Cardano 1%, and BNB 1.6%.
Among memecoins, Dogecoin rose 1%, and $TRUMP gained 4.1%.