After a two-day interest rate meeting that concluded today, the Federal Reserve announced that it would maintain interest rates at 3.75%-4.00% unchanged. This is in line with a previous report by CoinPedia, which stated that over 90% of Wall Street analysts expected no change in interest rates, mainly due to the approaching mid-term elections in the United States.

Bitcoin and stocks react to the suspension of interest rate adjustments

As of press time, Bitcoin ( BTC ) has shown a slightly positive reaction, rising by 0.18% to $80,681 per unit. During the same period, the amount of short positions liquidated reached $45.39 million, accounting for 77.4% of all liquidations.

As for the stock market, it continued the 2% upward trend accumulated over the previous two days at the opening on Wednesday. Reports attributed this round of gains to the market's high expectations for Anthropic to submit an application for IPO, as well as the record-breaking financial performance of the semiconductor company SK Hynix.

However, not long after the interest rate decision was announced, due to disagreements within the Federal Open Market Committee ( FOMC ), market caution increased, and there was a slight sell-off in stocks. Ten of the twelve members voted in favor of keeping the benchmark interest rate unchanged, while Federal Reserve Governor Lisa Cook and the Chairman of the Cleveland Federal Reserve Beth Hammack voted in favor of raising the interest rate by 25 basis points.

The Nasdaq Composite Index fell slightly by 0.13%, while the S&P 500 Index rose by 0.33%, as defensive buying offset some selling pressure.

Another factor affecting investor sentiment is that the Federal Reserve has sent signals of a more hawkish stance on future policy in its communications. The Fed has revised its description of U.S. economic growth from "solid" to "strong," and added that inflation "remains high." This has raised the probability of a rate hike in December to 85%; reports suggest that this will have a negative impact on the cash flows and debt situations of highly valued technology companies.

What's next for Bitcoin, stocks, and bonds?

Cooling stock market sentiment drives the yield of 10-year U.S. Treasury bonds to 5.03%; if the Federal Reserve further raises interest rates, yields are expected to rise even higher.

Bitcoin is currently facing the critical threshold of $81,000, which needs to be broken through, after which it may test the resistance level of $84,500 again. However, if buyers are unable to maintain this momentum, it is likely to fall back to $77,000. Nevertheless, the rainbow chart indicates that after a long period of consolidation, the market is likely to see an upward trend that usually follows.

At the same time, the next move of technology stocks will largely depend on the market's reaction to Alphabet and Microsoft's financial reports, which will be released later.