Fed holds rates steady, signals continued inflation concern, keeping pressure on Bitcoin

The US Federal Reserve held its benchmark interest rate at 3.75% to 4% on Wednesday, with Governor Lisa Cook and Cleveland Fed President Beth Hammack dissenting in favor of a rate hike. Fed Chair Kevin Warsh acknowledged inflation remains above the 2% target. Analysts say Bitcoin faces headwinds as it must "compete with" a risk-free rate near 4%, and the Fed's hawkish messaging surprised markets despite the widely expected hold. With expectations of further rate hikes in December and beyond, traders are looking to upcoming PCE inflation data and tech earnings for direction on risk assets.