Bitcoin Holds Above $81,500 After Fed Holds Rates Steady in Split Vote

Bitcoin price — Bitcoin traded above $81,500 on Wednesday as the U.S. Federal Reserve voted to keep its benchmark interest rate unchanged in a decision that saw two policymakers dissent in favor of a hike.

The Federal Open Market Committee held the federal funds target range steady at 3.75% to 4.00%. The 10-2 vote marked the first time since 1992 that a Fed governor and a regional bank president have jointly dissented on the same side, with Governor Lisa Cook and Cleveland Fed President Beth Hammack advocating for a quarter-point increase.

Bitcoin’s price showed a muted, volatile reaction to the announcement, initially spiking to around $81,700 before dipping below $80,500 and recovering toward $81,000. Fed Chair Kevin Warsh stated that politics played no role in the decision, days before the U.S. midterm elections, and emphasized the committee would be guided by incoming data.

The Fed’s statement removed prior language about when a hike might support a return to 2% inflation, replacing it with a line saying more information would guide policy. Market pricing currently suggests a roughly three-in-four chance of a rate increase by December.