Bitcoin (BTC) rebounded to nearly $118,000 on cautious market optimism after the Federal Reserve decided to hold interest rates steady at 4.25–4.5%, while the White House released its much-anticipated digital asset policy report.
Analysts say the combination of monetary stability and a regulatory roadmap provided temporary support for crypto markets, which had seen low volatility in recent weeks.
Fed Holds Rates, Markets Stabilize
The Federal Open Market Committee (FOMC) maintained its current policy stance, signaling that inflation pressures are easing but the Fed remains data-driven.
Traditionally, stable or lower interest rates can favor Bitcoin and other risk assets, as investors seek alternative stores of value outside the dollar. The market reaction was measured but positive.
White House Report Adds Regulatory Clarity
The rebound coincided with the publication of the 160-page White House Digital Asset Report, which outlines policy priorities for 2025:
Strengthening cooperation between the SEC, CFTC, and Treasury
Stablecoin transparency and real-time reserve reporting
DeFi oversight and registration requirements for major protocols
Exploration of a U.S. CBDC (digital dollar)
While the report did not confirm a U.S. Bitcoin reserve, it reflects growing government interest in regulating and integrating digital assets into the financial system.
Bitcoin Price Outlook
Market participants expect continued sideways trading in the short term, with institutional flows likely to drive the next significant move.
“Bitcoin holding near $118K after macro and policy updates suggests strong support levels,” said a research analyst at Blockchain Strategies. “The next breakout will depend on either institutional inflows or clear policy shifts from U.S. regulators.”
Global Impact
Global crypto markets reacted modestly to the news.
Ethereum remained near $4,200.
Major altcoins saw minor gains between 1–3%.
Stablecoins continued to dominate daily volume as traders waited for a clearer trend.
Industry experts believe that clarity from the White House and a stable Fed stance may attract institutional buyers and family offices looking for digital gold exposure.
If Bitcoin maintains this support level through Q1 2025, analysts expect renewed bullish sentiment, especially if spot ETFs or treasury allocations continue to gain momentum.
