The Federal Reserve’s upcoming FOMC meeting on May 7, 2025, is drawing serious attention from crypto investors. With interest rate decisions and Powell’s speech on the agenda, the market is on edge.
After a long pause following aggressive hikes in 2022–2023, the Fed began cutting rates in late 2024, bringing the current rate to 4.25%–4.50%. Now, with a 94% probability that the Fed will hold rates steady, investors are watching closely.
Despite strong job numbers, inflation remains slightly high, clouding the timeline for future cuts. Experts say more rate cuts may come later in 2025, but there’s still no clear roadmap.
Market analyst King Baldwin shared his pre-FOMC outlook on X, pointing to the high odds of no change in interest rates. However, he warns that a hawkish tone from the Fed could send Bitcoin down to a support zone between $91,500 and $92,000.
If Jerome Powell
All eyes are now on Powell’s press conference, with hopes for a June rate cut signal.
Crypto analyst Michaël van de Poppe believes a rate cut is highly unlikely at this FOMC meeting. He suggests the Fed will stay cautious due to sticky inflation. A surprise cut would shock markets.
Adding to the pressure is Donald Trump
Trump’s aggressive stance on trade and monetary policy is stirring debate about the Fed’s independence. With fiat volatility rising, many investors are turning back to Bitcoin as a hedge.
With Powell’s speech scheduled for May 7, both traditional and crypto markets are bracing for volatility. Analysts are urging traders to avoid leverage and expect short-term turbulence.
The Fed is expected to cut rates at least three times in 2025, impacting Bitcoin and other high-risk assets
A hawkish stance may push Bitcoin down to $91.5K–$92K; a dovish tone could see it rebound toward $100K.
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