Markets expect a 25bps Fed rate cut (70% odds) at the May 7, 2025, FOMC meeting, fueling crypto volatility. Bitcoin (+3.2% to $68,450) and Ethereum (+2.8% to $3,150) gained alongside increased exchange volumes, signaling bullish positioning Powell’s remarks remain pivotal, as past speeches caused 5% BTC swings. On-chain data shows 18,000 BTC withdrawn to cold storage, hinting at long-term holder confidence. AI-linked tokens like RNDR (+4.5%) rose, mirroring risk-on sentiment. Technical indicators (BTC RSI: 62) suggest bullish momentum, but a hawkish fed tone risks rapid sell-offs. Traders view rate cuts as potential catalysts for sustained crypto rallies, with AI assets poised for amplified volatility amid Fed policy shifts.

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