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FOMC Meeting May 7: Will Powell’s Speech Trigger Bitcoin Crash or Rally?

Published by
Zafar Naik

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.

Volatility Ahead of Powell Speech

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 signals a dovish stance or hints at near-term cuts, Bitcoin could rebound toward the $100,000 mark. Baldwin notes that Core PCE inflation stands at 2.6%, and recession odds are at 60%—both factors keeping investors cautious.

All eyes are now on Powell’s press conference, with hopes for a June rate cut signal.

No Rate Cut Expected, Says Michaël van de Poppe

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 who continues to push for cuts amid rising tariffs. But the Federal Reserve is expected to focus on inflation control rather than bow to political pressure.

Crypto Market Braces for Powell’s Speech

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.

FAQs

How many times will the Fed cut rates in 2025?

The Fed is expected to cut rates at least three times in 2025, impacting Bitcoin and other high-risk assets

How could the Fed’s decision affect Bitcoin’s price?

A hawkish stance may push Bitcoin down to $91.5K–$92K; a dovish tone could see it rebound toward $100K.

Zafar Naik

Zafar is a seasoned crypto and blockchain news writer with four years of experience. Known for accuracy, in-depth analysis, and a clear, engaging style, Zafar actively participates in blockchain communities. Beyond writing, Zafar enjoys trading and exploring the latest trends in the crypto market.

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