By using this site, you agree to the Privacy Policy and Terms of Use.
Accept
bitcoin
Bitcoin (BTC) $ 0.00000000000000
ethereum
Ethereum (ETH) $ 0.00000000000000
xrp
XRP (XRP) $ 0.00000000000000
tether
Tether (USDT) $ 0.00000000000000
solana
Solana (SOL) $ 0.00000000000000
bnb
BNB (BNB) $ 0.00000000000000
usd-coin
USDC (USDC) $ 0.00000000000000
dogecoin
Dogecoin (DOGE) $ 0.00000000000000
cardano
Cardano (ADA) $ 0.00000000000000
staked-ether
Lido Staked Ether (STETH) $ 0.00000000000000
tron
TRON (TRX) $ 0.00000000000000
chainlink
Chainlink (LINK) $ 0.00000000000000
avalanche-2
Avalanche (AVAX) $ 0.00000000000000
wrapped-bitcoin
Wrapped Bitcoin (WBTC) $ 0.00000000000000
wrapped-steth
Wrapped stETH (WSTETH) $ 0.00000000000000
the-open-network
Toncoin (TON) $ 0.00000000000000
stellar
Stellar (XLM) $ 0.00000000000000
hedera-hashgraph
Hedera (HBAR) $ 0.00000000000000
sui
Sui (SUI) $ 0.00000000000000
shiba-inu
Shiba Inu (SHIB) $ 0.00000000000000
weth
WETH (WETH) $ 0.00000000000000
leo-token
LEO Token (LEO) $ 0.00000000000000
polkadot
Polkadot (DOT) $ 0.00000000000000
litecoin
Litecoin (LTC) $ 0.00000000000000
bitget-token
Bitget Token (BGB) $ 0.00000000000000
bitcoin-cash
Bitcoin Cash (BCH) $ 0.00000000000000
hyperliquid
Hyperliquid (HYPE) $ 0.00000000000000
usds
USDS (USDS) $ 0.00000000000000
uniswap
Uniswap (UNI) $ 0.00000000000000
cryptoprune cryptoprune
  • MarketCap
  • Crypto Bubbles
  • Multi Currency
  • Evaluation
  • Home
  • News
  • Crypto
    • Altcoins
    • Bitcoin
    • Blockchain
    • Cardano
    • Ethereum
    • NFT
    • Solana
  • Market
  • Mining
  • Exchange
  • Regulation
  • Metaverse
Crypto PruneCrypto Prune
  • Home
  • News
  • Crypto
    • Altcoins
    • Bitcoin
    • Blockchain
    • Cardano
    • Ethereum
    • NFT
    • Solana
  • Market
  • Mining
  • Exchange
  • Regulation
  • Metaverse

Search

  • Home
  • News
  • Crypto
    • Altcoins
    • Bitcoin
    • Blockchain
    • Cardano
    • Ethereum
    • NFT
    • Solana
  • Market
  • Mining
  • Exchange
  • Regulation
  • Metaverse

Latest Stories

Banxico insists on 'healthy distance' from Bitcoin despite Mexico boom
Banxico insists on ‘healthy distance’ from Bitcoin despite Mexico boom
image
Binance completely overhauls stablecoin trading with TrumpLink USD1
Bitcoin issues rare liquidity warning as Fed's $40 billion 'stimulus' was actually a trap
Bitcoin issues rare liquidity warning as Fed’s $40 billion ‘stimulus’ was actually a trap
SpaceX
SpaceX’s $94 million Bitcoin transfer raises questions about IPO timing
image
NFT market faces steepest decline as sales plummet to lowest level this year
© 2025 All Rights reserved | Powered by Crypto Prune
Crypto Prune > Market > Bitcoin will pause before Powell’s announcement
Market

Bitcoin will pause before Powell’s announcement

7 months ago 7 Min Read

Bitcoin (BTC) is in a cautious stage Investors are waiting for a decision on the Federal Reserve (Fed) US About interest ratesis scheduled for tomorrow, Wednesday, May 7th, 2025.

At the time of this publication, as seen in the Encryption Price CalculatorUSD 94,000 BTC estimate13% below the historic maximum of 109,300 US$109,300 registered on January 20th, consistent with Donald Trump’s assumptions.

This pause in the Bitcoin Bundle Impulse reflects Uncertainty surrounding the Fed’s next announcement And in particular, President Jerome Powell’s subsequent discourse could provide important clues about the course of monetary policy in the coming months.

The following graph provided by TrainingView shows how Bitcoin has fluctuated since January 1st of this year.

As cryptootics reported yesterday, There is only a 1.8% chance of lowering interest rates tomorrow.. These fees have continued to range from 4.25% to 4.5% since January 2025, after three consecutive cuts in the past few months.

The position of the Federal Reserve led by Powell was clear. The US economy continues to show strength, with solid labor markets and inflation that does not justify immediate action.

This “looks like wait” strategy seeks to assess the impact of the Trump administration’s commercial policy, particularly the impact of import tariffs that have created fears of inflation and recession.

Price decisions are important, but investors are paying more attention to the tone and signs that Powell can offer in his post-advertising speech.

Historically, their comments have produced high volatility in the market, particularly with assets considered “risk” such as Bitcoin, cryptocurrency and behavior. When Powell adopts an optimistic stance about the economy, the market tends to consolidate or climb. Instead, careful or pessimistic tones usually trigger downward corrections.

See also  Metaplanet Bitcoin revenues jump 115.7% when the stock price plummets 67.5% in the third quarter

In this regard, Powell’s words can predict whether the federal feat of the Fed will be cut in June or a July meeting.

How about altcoins?

BTC slows down the upward course, while cryptocurrencies show a variety of behavior. However, within the top 100 market capitalization, Most digital assets are on weekly returns (the past 7 days).

US President Mimecoin, official Trump (Trump), has achieved the worst ranking position, falling almost 23% over the past seven days.

As you can see in the image below, those who had big falls are Worldcoin (World), Raydium (Ray), Optimism (OP), and Ethena (ENA).

Among the digital assets that maintain aggressive weekly returns, in Antipode, there are 4 (Form), Virtual Protocol (Virtual), Dexe (Dexe), Quant (QNT), and Monero (XMR).

Unlike what happened last week, there are no mimecoins between big increases between digital coins now. This is a sign of that Appetite for risk has diluted, and investors have become more cautious.

Why is what the Fed says so important when Bitcoin is “independent”?

At first glance, it may seem like a contradiction that a currency born with the aim of challenging traditional financial order – is heavily influenced by the US Federal Reserve decision.

After all, Bitcoin was created as an alternative to the centralized banking system and should theoretically function outside of the state’s economic policy.

However, market reality is much more complicated, and there are several weight reasons why Jerome Powell’s words can drive BTC prices (or even more) both BTC prices and the essential events of the Bitcoin ecosystem.

See also  Asia is divided over stablecoin adoption, despite banks' push

Bitcoin was devised as a decentralized sovereign currency, Today, it is deeply integrated into global financial markets.. In fact, as you can see in the image below, it is one of the 10 most valuable financial assets in the world.

The existence of Bitcoin ETFs in cash, derivative financial instruments, and US-regulated trading platforms (which are the largest global financial power) shows that a critical portion of capital circulating in BTC comes from institutional investors and funds that respond to traditional incentives.

If interest rates are high, those same funds will find attractive opportunities in treasured debt and savings accounts, reducing their exposure to Bitcoin. On the contrary, forecasting fees will increase your appetite for alternative assets. So, Bitcoin doesn’t require a traditional financial system, but the majority of its liquidity comes from active-participating actors.

This must be added that Bitcoin could be a valuable reserve for some, but in international markets he continues to quote in dollars. Therefore, monetary policy affects relative prices. An increase or decrease in interest rates directly affects the strength of the dollar and, therefore, the value of BTC measured in that currency.

As the dollar is strengthened, as is usually the case with high financial hardening fees and expectations, Bitcoin (as with other assets) tends to lose value in front of it. Not because the intrinsic value changes, but because the market evaluates it based on the purchasing power of the dominant currency.

Finally, you need to understand that Many capitals that enter Bitcoin are seeking to maximize returns rather than try to revolutionize. Most of the current market participants probably aren’t cypherpunks Neither Anarkycapitalists: they are traders, investors, investment funds, and general users who are trying to protect or increase their assets. For them, performance is more important than ideology.

See also  Interest in the XRP ETF shoots the biggest historically

So when Powell talks about recession, inflation, or fees, the public will usually react similarly to other financial assets. It is a mistake to think that everyone who invests in Bitcoin shares the same “anti-system” vision. Many people just consider it a good opportunity.

Perhaps as time passes and as the Fíat system continues to deteriorate, more investors are understanding the true value of Bitcoin and why it is so important. Meanwhile, as trader Willie Wu says, each fall is an opportunity to buy BTC at a low price.

TAGGED:FinanceMarket
Leave a comment Leave a comment

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

RELATED NEWS

Ripple USD Brand New Historical Capital Record

Ripple USD Brand New Historical Capital Record

By Crypto Prune 6 months ago
Bitcoin and US stock markets see modest profits after maintaining the Fed

Bitcoin and US stock markets see modest profits after maintaining the Fed

By Crypto Prune 7 months ago
According to analysts, Bitcoin behaves differently than it did in previous cycles

According to analysts, Bitcoin behaves differently than it did in previous cycles

By Crypto Prune 6 months ago
$1.82T Stablecoin Boom Set Speedrun Banking Histoly, says A16Z

$1.82T Stablecoin Boom Set Speedrun Banking Histoly, says A16Z

By Crypto Prune 7 months ago
cryptoprune

© 2025 All Rights reserved | Powered by Crypto Prune

  • Altcoins
  • Bitcoin
  • Blockchain
  • Cardano
  • Ethereum
  • Exchange
  • Market
  • Metaverse
  • Mining
  • News
  • Crypto
  • NFT
  • Solana
  • Regulation
  • Technology
  • About Us
  • Contact Us
  • Disclaimer
  • Privacy Policy
  • Terms of Service
Welcome Back!

Sign in to your account

Lost your password?