Fed Holds Steady as Bitcoin Trails Dollar Rally

The Federal Reserve kept its benchmark interest rate unchanged at 3.50% to 3.75% in line with market expectations, according to minutes from the July meeting.

Economic activity has been expanding at a solid pace despite elevated uncertainty, and job gains have 'kept pace with the workforce', the central bank noted.

The policy vote came at 9-3, with Cleveland, Minneapolis, and Dallas Fed Presidents dissenting in favor of a 25-basis-point rate increase.

Cryptocurrencies quickly responded to the decision, with major tokens briefly seeing gains following the announcement. Bitcoin (BTC) rose above $64,000 but eased below a few hours later.

Glassnode reported that BTC is trailing the US dollar, which has been rallying since May, with the top crypto showing one of its weakest performances against the USD.