Bitcoin Surges to $85K as Stocks Gain Post-Fed, Though One Analyst Urges Caution

Gold Surges Past $3,050 as Crypto Markets Climb After Fed Rate Decision

Gold continues to shine as the standout asset of the current cycle, reaching a new record high above $3,050 per ounce.

Meanwhile, crypto markets are seeing moderate gains following the Federal Reserve’s decision to keep interest rates steady at 4.25%-4.50% after its latest Federal Open Market Committee (FOMC) meeting.

Bitcoin (BTC) has climbed 4.5% over the past 24 hours, now trading at $85,500—its highest level since March 9.

The CoinDesk 20 index, which tracks the top 20 cryptocurrencies excluding stablecoins, meme coins, and exchange tokens, has risen 6%. Ether (ETH) and Solana (SOL) both gained 7%, while Ripple’s XRP jumped 10% following CEO Brad Garlinghouse’s announcement that the Securities and Exchange Commission (SEC) is set to drop its case against the company.

Crypto-related stocks are also in the green, particularly among bitcoin mining firms. Bitdeer (BTDR) is up 10%, potentially benefiting from advances in its ASIC chip production and news that stablecoin giant Tether has expanded its ownership stake in the company to 21%. Core Scientific (CORZ), which gained 8%, may be seeing positive momentum from AI cloud computing firm CoreWeave’s IPO filing earlier this month—CoreWeave is its largest customer. However, both stocks remain significantly down since their recent highs, with Bitdeer down 61% since January and Core Scientific off 53% since November.

Federal Reserve Chair Jerome Powell attempted to reassure markets, stating that inflation caused by tariffs is likely to be temporary and that recession risks remain low. This led to an initial boost in traditional markets, with the Nasdaq, S&P 500, and Dow Jones all gaining at least 1%.

However, some market experts remain skeptical. “The Fed is once again using the word ‘transitory’ to describe inflationary pressures from tariffs,” economist Mohamed A. El-Erian commented on X. “Given the mistakes of the past and today’s economic uncertainty, the Fed should show more caution. It’s far too early to say with confidence that these effects will be short-lived.”

Gold, which surged past $3,000 earlier this week, extended its rally to a new record high of over $3,050. Callie Cox, chief market strategist at Ritholtz Wealth Management, noted that while additional rate cuts are still on the table, the Fed appears unwilling to ease financial conditions too aggressively. “The central bank is signaling that future cuts may come at a cost to stock market stability. The ‘soft landing’ narrative might be coming to an end,” she explained.