The Federal Reserve paused interest rate cuts, maintaining a benchmark rate of 4.25% to 4.50% amidst economic uncertainty caused by U.S. tariffs under President Donald Trump. The Fed's updated forecast indicated two rate cuts expected this year, aligning with prior estimates and suggesting a more conservative outlook than earlier projections, which anticipated up to three cuts previously. Following the announcement, Bitcoin's price fluctuated slightly, even after a 3.2% increase prior. Market reactions included a mixed sentiment as inflation remains a concern, with recent Consumer Price Index (CPI) figures indicating a 2.8% rise. With the Fed futures indicating a 51% chance of a rate cut in June, the economic landscape remains uncertain, particularly for risk assets like cryptocurrencies. Spot Bitcoin ETFs saw over $500 million in inflows recently, signaling renewed interest amid market volatility.

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