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The FOMC meeting of the Federal Reserve has begun, with expectations that interest rates will remain unchanged at 4.25% to 4.50%. However, Jerome Powell's speech is the decisive factor for Bitcoin and the cryptocurrency market. There is currently a 99% probability that the Fed will not adjust interest rates.
During this tense period, Bitcoin is trading in the range of $92,000 to $97,000. Investors are waiting to see how Powell will guide on inflation, growth, and the possibility of interest rate cuts, which will determine whether the cryptocurrency market continues to rise or fall.
Tensions escalate as Donald Trump proposes increasing taxes, raising concerns about inflation and delaying growth prospects. This is a stagflation scenario: slow growth but high inflation. In this context, the Fed faces a difficult choice between keeping interest rates unchanged with the risk of further slowing the economy, or starting to cut rates but potentially reigniting inflation.
Powell publicly maintains a hawkish stance, but recent actions from the Fed suggest otherwise. The pace of quantitative tightening is slowing down, bond repurchases are beginning quietly, and the reduction of the balance sheet is happening at a slower rate. This is a sign that the Fed may be preparing for easing, even if not officially announced.
For Bitcoin, this expectation is enough to trigger a price increase. If Powell seems dovish, there is a high chance the price will surpass $97,000. Conversely, if he maintains a tough stance, investors may retest the support level of $92,000. The cryptocurrency market is highly focused on today's FOMC meeting, and Powell's attitude could set the trend for the rest of Q2.
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Source: https://tintucbitcoin.com/bai-phat-bieu-cua-jerome-powell-anh-huong-den-tien-dien-tu/
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