Bitcoin Price Jumps After The Fed’s Decision to Keep Interest Rates Steady

Bitcoin (BTC) saw a significant surge following the Federal Reserve's (The Fed) decision to maintain interest rates between 4.25 percent and 4.5 percent during the January Federal Open Market Committee (FOMC) meeting. This move pushed Bitcoin’s price to $105,000, or approximately IDR 1.68 billion, on Thursday (30/1/2025), after previously dipping to a low of $101,429, or around IDR 1.62 billion.

In addition to Bitcoin, other cryptocurrencies also experienced price increases. Ethereum (ETH) rose by about 1.70 percent, while XRP strengthened by 1 percent.

Factors Driving Bitcoin’s Price Surge

One of the key factors driving Bitcoin's rise is the decline in the appeal of fixed-income investment instruments due to stable interest rates. Investors are shifting towards equities and cryptocurrencies, which are seen as having higher potential returns.

Additionally, there has been a notable increase in inflows into the U.S. Bitcoin-spot Exchange-Traded Fund (ETF), totaling $120.4 million (around IDR 1.93 trillion) as of January 29. This reflects growing institutional investor interest in Bitcoin.

On the other hand, the U.S. government’s stance on cryptocurrency has also attracted attention. President Donald Trump issued an executive order concerning digital assets, leading to the formation of the Presidential Working Group on Digital Asset Markets. Speculation has emerged regarding the potential creation of a Strategic Bitcoin Reserve (SBR) by the U.S. government.

Could Bitcoin Reach a New Record High?

U.S. Senator Cynthia Lummis recently introduced the Bitcoin Bill, which proposes that the U.S. government purchase 1 million BTC over the next five years. If this regulation is passed, a significant shift in the supply-demand balance of Bitcoin could occur, potentially further driving up BTC prices.

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