Bitcoin price today: extends gains to $85k as sentiment improves after Fed meeting

Bitcoin moved higher on Thursday, extending overnight gains as risk appetite improved after the Federal Reserve maintained its rate cut projections and signaled no drastic changes in the face of increased economic uncertainty. 

XRP remained a standout performer in crypto, staying close to a two-week high after the Securities and Exchange Commission dropped its long-running lawsuit against issuer Ripple. 

This week’s gains also come on the back of some bargain buying in crypto, after the sector was walloped by increased risk aversion over the past month. 

Bitcoin rose 1.5% to $85,601.0 by 10:01 ET (14:01 GMT). 

Bitcoin upbeat after Fed

Bitcoin’s recent gains came largely tracking those in broader risk-driven markets, as sentiment was aided by the Fed signaling no drastic changes in its policy or outlook.

The central bank kept rates unchanged as widely expected, while forecasting higher inflation and softer growth. 

The Fed also maintained its projections that interest rates will fall by about 50 basis point by the year-end.

But policymakers, particularly Fed Chair Jerome Powell, flagged continued uncertainty over the U.S. economic outlook, especially under President Donald Trump’s aggressive trade tariff policies. 

Still, the Fed’s meeting as a whole offered markets some relief, with Wall Street recovering further from six-month lows on Wednesday. Crypto markets largely tracked these gains, with lower rates boding well for sectors driven largely by speculation.

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