The Date and Impact of the U.S. Federal Meeting on the Cryptocurrency Market in May 2025
The next meeting of the Federal Open Market Committee (FOMC) will be held on May 6 and 7, 2025, where it is expected that the U.S. Federal Reserve will keep interest rates unchanged, amid mixed economic indicators including a 0.3% contraction in GDP in the first quarter and a stable unemployment rate at 4.2%.
The Impact of Federal Decisions on the Cryptocurrency Market
Federal decisions regarding interest rates significantly affect the cryptocurrency market. When interest rates are high, investors tend to shy away from high-risk assets like cryptocurrencies, leading to decreased demand and prices. Conversely, low interest rates encourage investors to seek higher returns, increasing the attractiveness of cryptocurrencies and leading to price increases.
Future Expectations
Despite expectations of no change in interest rates at the upcoming meeting, markets are watching for the possibility of a rate cut in subsequent meetings, especially in June or July, depending on developments in inflation and economic growth. Such a move could enhance the performance of cryptocurrencies, as a rate cut is expected to increase liquidity and stimulate investments in assets.
