Bitcoin continues to rise after Federal Reserve meeting.

Bitcoin has made significant gains following the Federal Reserve meeting and comments from Chair Jerome Powell on cryptocurrency regulation. The digital asset rose 1.3% to approximately $105,134 in New York, adding to a 3.5% increase the day before. Other tokens such as Ether and Solana also saw gains.

During the Federal Reserve meeting, Powell signaled a pause in monetary easing and emphasized the need for further progress on inflation before considering interest rate adjustments. He mentioned that banks can serve crypto customers as long as they manage risks, implying the importance of a regulatory framework for cryptocurrencies.

Investors have been eagerly anticipating friendlier regulations under President Donald Trump’s administration, which has shown support for the crypto sector. Analysts note that the Bitcoin rally may be maturing, with the token hitting a record high ahead of Trump’s inauguration but slipping back afterward. Despite this, Bitcoin is still up over 50% since Trump’s election victory in November.

There are contrasting views on the future of Bitcoin, with some suggesting a potential correction due to the recent rally, while others foresee continued growth. Market analysts point to the correlation between Bitcoin and U.S. technology shares, indicating that the token may have benefited from positive movements in Nasdaq 100 equity futures following corporate earnings reports.

Various developments in the crypto space, such as CME Group Inc.’s introduction of futures products on Robinhood Markets Inc.’s app and investment firms proposing more crypto exchange-traded funds (ETFs) to the Securities & Exchange Commission (SEC), demonstrate growing interest and engagement with cryptocurrencies. These initiatives signal a broader acceptance and adoption of digital assets, potentially leading to further gains.

Overall, the outlook for Bitcoin remains positive, with continued interest from investors and regulatory bodies shaping the future of cryptocurrencies in the financial market. The recent rally in Bitcoin is reflective of the evolving landscape of digital assets and their increasing relevance in the mainstream financial system.