Bitcoin flat after Fed keeps rates still and Powell keeps quiet on politics
- The Federal Reserve kept interest rates unchanged on Wednesday.
- Fed Chair Jerome Powell didn’t comment on a Justice Department investigation.
- Bitcoin didn’t budge.
Bitcoin lay flat Wednesday as Federal Reserve Chair Jerome Powell remained tight-lipped when pressed by journalists about his row with President Donald Trump.
The leading cryptocurrency was trading near $89,170 per coin shortly after Powell’s remarks. Over the past seven days, it’s down over 1%.
The Federal Reserve was widely expected to keep interest rates still in its first meeting of 2026 — and markets had already priced that in. What traders were keeping an eye on, though, was whether Chair Powell would discuss much else.
“Near-term bullish catalysts for Bitcoin remain intact but are increasingly political rather than monetary,” Gabe Selby, head of research at CF Benchmarks, said.
Powell is fighting allegations that he misled lawmakers about the cost of renovations to Federal Reserve buildings. He has said the Justice Department’s investigation is political.
Since last year, Trump has controversially pressured the central bank chief to lower interest rates.
Powell kept quiet
The Fed chief didn’t comment on anything other than inflation in the US during his press conference.
“I have nothing for you on that today,” he said when a reporter questioned him on the DOJ’s subpoenas.
Bitcoin has typically performed well in a low interest rate environment, so Bitcoin traders and other investors were watching for any signal the bank would lower rates at its next meeting in March.
Instead, Powell signalled the bank would keep them on hold as Fed officials wait to see future data, confirming traders’ predictions. Odds that interest rates will remain the same following the next meeting in March rose slightly to 86% after Wednesday’s presser, according to the CME’s FedWatch tool.
What happens next
Powell’s term as chair will expire in May. The president is expected to nominate a successor next week, and the new banking chief could have a more dovish approach than Powell.
Any announcement in the coming days could have an impact on the price of Bitcoin.
“A ‘shadow Fed Chair’ announcement could shift expectations quickly if markets believe the nominee can preserve Fed independence while building consensus for faster rate cuts than currently priced,” added Selby.
Mathew Di Salvo is a news correspondent with DL News. Got a tip? Email at
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