This week, a series of geopolitical and macroeconomic events will combine to enable high volatility in both Bitcoin (BTC) and financial markets in general.
This Wednesday, the US central bank, the Federal Reserve, will announce how interest rates will continue. These are expected to remain unchanged in the 4.25% to 4.5% range, but the eye focuses on post-discourse given by the agency’s president, Jerome Powell.
When Powell offers an optimistic look to the economy, stock markets and cryptocurrencies tend to respond to consolidation or upwards. Otherwise, they usually respond, as reported by Cryptootics.
Officials repeated his predictions that he would make two interest rate cuts this year in the first semester. This will improve the liquidity available in the economy. However, on various occasions he noted that he has no difficulty implementing this policy as the economy remained “generally strong” in the “solid” labor market.
The Fed also has a position to “wait and see” the decision, assessing the impact of President Donald Trump’s tariff measures. The president suspends imports to imports he had, and relief to the market will maintain what was placed in China and unlock economic uncertainty.
but, This week is the key to this “commercial war”because senior US officials and their Chinese counterparts meet in Switzerland over the weekend to discuss it. This encounter raises hope for the possibility of exhaust in commercial warfare.
Additionally, representatives of the Trump government have also met with officials from various countries for commercial negotiations.
Scott Beschent, US Secretary to the Treasury Department, I hope to advertise by the end of the first commercial contract And he foresees that at least 80% of the remaining will occur by the end of 2025. Therefore, regarding his communications in this regard, there may be high volatility in the market, including Bitcoin.
Despite this situation, Trump has repeatedly stated that rats will be cut as quickly as possible to avoid the recession. Therefore, the market is also focusing on whether the Fed maintains its vision to implement this measure this year.
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According to the consumer price index issued in April, US inflation fell to 2.4% per year for the second consecutive month. Following this trend, Trump’s tariff policy will generate expectations of increased growth and may delay rate cuts, but will approach the Fed’s intended 2% objective.
According to analyst Juan Rodriguez The market will pay attention to whether Powell projects an increase in inflation, whether temporary or permanent, causing a recession.. This last option, he warns, will potentially become a Bitcoin bassist.
Rodriguez also notes that in the short term, it is important that there be positive advances in commercial negotiations so that markets continue to rise. «Before the contract, we go and look for the historic maximum Bitcoin price. He’ll come back again before there’s no agreement,” he says.
Meanwhile, Bitcoin quotes up to USD 98,000 in the two months he played last week. This brings the currency down 11% below its historical maximum of 109,300 US$, which was registered three months ago.