#FOMCMeeting

The Federal Open Market Committee (FOMC) is preparing for its May meeting, where it is expected to keep interest rates unchanged in the range of 4.25% to 4.5%. Although President Donald Trump is pressuring for rate cuts, the Fed is sticking to its 'wait and see' strategy to assess the impacts of his trade policies.

Impacts on Bitcoin and cryptocurrencies

Bitcoin and other cryptocurrencies are sensitive to Fed decisions, as changes in interest rates affect market liquidity. If the Fed keeps rates unchanged, it could lead to continued uncertainty in the markets, which could increase Bitcoin's volatility. Conversely, if the Fed hints at a future rate cut, it could support Bitcoin's price growth, as lower rates typically lead to greater investments in riskier assets, including cryptocurrencies.

Another factor is inflation, which remains above the Fed's target of 2%. If inflation stays high, the Fed may be forced to keep rates at a higher level for a longer period, which could dampen Bitcoin's growth. Conversely, if inflation starts to decline, it could create favorable conditions for the cryptocurrency market.

What to watch for next?

Investors will closely monitor the tone of Jerome Powell's speech, the Fed Chair, which may indicate the central bank's future actions. If Powell hints at the possibility of rate cuts in the second half of the year, Bitcoin could see a positive reaction and growth towards the $100,000 mark. Conversely, if Powell emphasizes concerns about inflation, it could lead to a decline in Bitcoin's price.

Overall, the Fed's decision on interest rates and its comments on economic developments will have a significant impact on the cryptocurrency market, particularly on Bitcoin. Investors should pay attention not only to the decision itself but also to accompanying comments that may indicate future developments.

$BTC