Fed Keeps Interest Rates Steady, Bitmine Continues Ethereum Buying, and Bitcoin Call Options Halt Rally

Takeaways

• Fed stands pat at Jerome Powell’s last meeting as Fed Chair: T It marked the most divisive vote since 1992. The split decision comes as the committee deals with rising inflation and slowing growth prospects for the US economy as the US conflict with Iran enters its third month. It also marked the final meeting for embattled Federal Reserve chair Jerome Powell, who is set to step down May 15 at the end of his term, but has indicated he will stay on as governor for a brief period. On Wednesday, successor Kevin Warsh’s nomination moved out of the Senate Banking Committee, setting him up for a confirmation vote in the Republican-controlled Senate.
• Witt teases announcement for Strategic Bitcoin Reserve: The comments come after President Donald Trump signed an executive order last year to create the Strategic Bitcoin Reserve and a separate digital asset stockpile from crypto the government had seized from criminals and through civil forfeiture. On Monday, Rep. Nick Begich (R-AK) said he plans to revive the Strategic Reserve Bill in Congress as the American Reserve Modernization Act. It would direct the US government to purchase 1 million bitcoin over the next five years.
• Bitmine Immersion bolsters ether treasury: Tom Lee’s ethereum treasury company now holds more than five million ether, or roughly 4.21% of the total ethereum supply. It marked their largest purchase of the year. In the release announcing the move, Lee dubbed ethereum the “leading-war time store of value.” Since the conflict with Iran began, ethereum prices have pushed roughly 25% higher, while bitcoin has increased almost 20%.
• Options dealers prevent bitcoin from surpassing $80,000: As bitcoin approached the mark earlier this week, dealers who bought those call contracts were likely forced to sell as a hedging mechanism, pushing prices down, per Deribit data. To push through the “electrical fence,” it would reportedly require a renewed level of retail enthusiasm to support strong institutional flows. The price of bitcoin had dropped below $76,000 on Wednesday as the broader market digested news from the latest Fed meeting, then pushed back above that mark by mid-day Thursday.

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