LONDON: Bitcoin (BTC-USD) failed to benefit from the Fed’s decision to halt its interest rate increases for now. The Fed announced on Wednesday that it would keep the federal funds rate unchanged at 5.25% to 5.50%, after raising it steadily since March 2022.

This was the second time the Fed paused its tightening cycle, which aims to curb inflation and support economic growth. However, the Fed’s announcement did not boost bitcoin or other risk assets.

The leading cryptocurrency by market value dropped 0.5% in the last 24 hours and traded at $26,978, according to CoinGecko data.

Bitcoin followed the trend of the stock market, which also fell sharply on Wednesday.

The Nasdaq Composite (^IXIC) lost nearly 1.5% as investors reacted to Fed Chair Jerome Powell’s comments. Powell indicated that the Fed could tighten its monetary policy more than expected in the next few years, as inflation remains high and persistent.