The Federal Reserve opted to maintain its benchmark interest rate at 5.25% to 5.5% during the Federal Open Market Committee Meeting (FOMC) on Wednesday, a decision that coincided with a notable downturn in Bitcoin's price earlier that day.

Following the announcement, Bitcoin experienced a swift recovery, with its price rising from $57,300 to $57,700 within five minutes. The Fed also revealed plans to reduce the rate at which it sells US Treasury securities, decreasing its monthly redemption cap from $60 billion to $25 billion, starting in June.

While market participants largely anticipated the Fed's decision to maintain interest rates, concerns lingered about potential cuts later in the year. The central bank's acknowledgment of the need to address nationwide price inflation, which remains above 3%, hinted at a prolonged period of higher interest rates.

In its statement, the Fed emphasized the importance of gaining greater confidence in inflation moving sustainably toward 2% before considering a reduction in the target range. Despite inflation concerns, the economy demonstrated resilience, with 81% of S&P 500 companies surpassing Q1 earnings expectations, according to data from Bloomberg Intelligence.

Bitcoin's price volatility often correlates with central bank policies and macroeconomic conditions. Some analysts, like BitMEX co-founder Arthur Hayes, foresee Bitcoin's continued upward trajectory, especially as central bank balance sheets continue to expand.

As the Fed's decisions continue to impact global markets, Bitcoin remains a closely watched asset, with its price movements reflecting shifts in economic policies and investor sentiment.