Bitcoin has broken through the $35,000 (£28,700) level after the US Federal Reserve chose to keep interest rates unchanged.
During the Federal Open Market Committee (FOMC) meeting on Wednesday, the US central bank, in line with analysts' expectations, announced a rate pause. The benchmark federal funds rate remains at 5.25%-5.50%.
Bitcoin (BTC-USD) saw an almost 3% increase in the past 24 hours and is currently trading at $35,300 (£29,020), according to CoinGecko data.
At one point in the past day, the world's largest digital asset by market capitalization approached the $36,000 (£29,600) mark, reaching a high of $35,875 (£29,492), as per CoinGecko data.
Fed Chair Jerome Powell stated during a press conference after the meeting, "Today we decided to leave our interest policy unchanged and to continue to reduce our securities holdings. We will make decisions about the extent of additional policy firming and how long policy will remain restrictive, based on the totality of the incoming data, and the evolving outlook at the balance of risks."
Stocks associated with digital assets also saw gains. Coinbase (COIN), the largest US crypto exchange, increased by 0.89% on Wednesday, while MicroStrategy (MSTR) rose by 0.77%. Bitcoin mining firms Riot Platforms (RIOT) and Marathon Digital (MARA) recorded gains of 4.4% and 1.25%, respectively.
Bitcoin has been on a sustained rally since around October 15. This upward price trajectory seems to be driven in part by speculation that the US Securities and Exchange Commission (SEC) is close to approving a spot bitcoin ETF, providing investors with exposure to cryptocurrency without direct ownership.
Money managers, including BlackRock (BLK), have applied to launch such a product. Shortly after the start of Bitcoin's recent rally in mid-October, BlackRock CEO Larry Fink expressed positive views about digital assets in an interview with Fox Business. He suggested that the recent market response to digital assets indicates "pent-up interest in crypto."
Fink further stated, "I think there are more people running into a flight to quality, whether that is in Treasuries, gold, or crypto, depending on how you think of it. And I believe crypto will play that type of role, as a flight to quality." Photo by Isokivi, Wikimedia commons.