Bitcoin BTC +3.20% 's price remained relatively steady on Wednesday after the U.S. Federal Reserve kept interest rates at their current level on Wednesday.

The Federal Open Market Committee did what the majority of analysts predicted and held the benchmark federal funds rate in the current range of between 5.25% and 5.50%. The move marks the first rate pause of 2024.

"In support of its goals, the Committee decided to maintain the target range for the federal funds rate at 5.25% to 5.50%," the central bank said in a statement.

Regarding the possibility of a rate cut, the central bank said that "the Committee does not expect it will be appropriate to reduce the target range until it has gained greater confidence that inflation is moving sustainably toward 2%."

Economic outlook uncertain

"The economic outlook is uncertain, and the Committee remains highly attentive to inflation risks," the FOMC statement added.

However, the statement said that "job gains have remained strong, and the unemployment rate has remained low and inflation has eased over the past year but remains elevated."

"The Committee seeks to achieve maximum employment and inflation at the rate of 2% over the longer run. The Committee judges that the risks to achieving its employment and inflation goals are moving into better balance." the FOMC statement added.

According to the CME FedWatch Tool, the market now expects at least one rate cut by the July 31 FOMC meeting and rates to be about 50 to 100 basis points lower by the end of 2024. 

The world's largest cryptocurrency by market capitalization increased by a muted 0.4% over the past 24 hours to $64,564 at 2:16 p.m. ET, according to The Block's Price Page. 

Bitcoin has traded flat after the U.S. Federal Reserve decided to pause interest rates at current levels. Image: The Block.

Despite the current muted price action, Grayscale Managing Director of Research Zach Pandl forecasts upcoming conditions that could support the price of bitcoin. "If rate cuts are still the base case, the crypto outlook still looks favorable. A soft landing for the economy, Fed rate cuts, and a contentious presidential election should be a supportive macro backdrop for bitcoin," Pandl said in a note sent to The Block.

YouHodler Chief of Markets, Ruslan Lienkha, suggested that the price of bitcoin will continue to maintain a long-term upward trend, viewing the recent correction as the digital asset "taking a breather" ahead of Fed Chair Jerome Powell's speech today.

"We may see price consolidation for a while, plus or minus $10,000 from current levels, before the next price hike to a new all-time high happens. Thus, now is just another opportunity to accumulate the long position for long-term investors," Lienkha told The Block.