Bitcoin markets are bracing for potential disruptions as the Federal Open Market Committee prepares to conclude its meeting on May 6 and 7.
While it is widely expected that the federal funds rate will remain unchanged at 4.33% (target 4.25% - 4.50%), attention will shift to the tone and details of the subsequent press conference by Federal Reserve Chairman Jerome Powell at 2 PM Eastern Time, which could be pivotal for risk assets, including Bitcoin.
The backdrop is complex. The U.S. economy contracted in the first quarter of 2025, marking a reversal from late 2024.
Consumer spending has slowed significantly while inflation remains high, with the core Personal Consumption Expenditures Price Index rising to 3.5% annually.
At the same time, recently imposed tariffs are expected to exert upward pressure on prices while weakening growth prospects.