The value of bitcoin edged higher on Wednesday, as the US dollar lost traction after the Federal Reserve kept interest rates on hold but indicated growing confidence in the economy.
The BTC/USD exchange rate advanced 0.6% to $655.20, according to CoinDesk. The pair traded within a narrow range of $647.92-$659.51 on Wednesday.
Bitcoin’s value has remained relatively steady after the cryptocurrency’s second ever reward having on July 9. Over that period prices have more or less traded steady, as investors searched for new market catalysts.
Since January 1, the cryptocurrency has gained more than 50% in value, reflecting large gains at the end of the second quarter.
The US dollar turned lower Wednesday afternoon, as investors reacted sharply to the Federal Reserve’s decision to leave interest rates unchanged. The Fed indicated that “near-term risks to the economic outlook have diminished,” but also stated that inflation would remain below target for the foreseeable future.
The dollar index, a trade-weighted average of the US currency against six global peers, fell 0.4% to 96.74. The dollar had initially spiked following the rate statement before turning sharply lower.