Fed Rate Pause Triggers Mixed Market Signals as Options Traders Bet on $70K BTC Breakout

The U.S. Federal Reserve kept interest rates unchanged at 3.50%-3.75% for the fifth time on Wednesday, causing mixed signals in traditional and crypto markets.

In a split vote, nine FOMC members approved the rate pause while three called for a 0.25% increase. The Fed cited 'elevated uncertainty' due to the Middle East conflict as a reason for not raising rates.

U.S. stock markets dropped lower after the announcement, with the Dow Jones falling 2.19%, S&P 500 dipping 1.5%, and Nasdaq posting a 1.74% loss.

Bitcoin initially rallied to $64.7K but then sharply dropped to $63.2K before recovering to its current price of around $64K. Ethereum barely held onto the $1900 level.