*Bitcoin Slips as Markets Eye Fed's Rate Call*
Bitcoin (BTC) fell to around *$59,500 on Binance* ahead of the upcoming *FOMC meeting*, with traders anticipating a *hawkish tone* from the Federal Reserve. Expectations strongly suggest *no change in interest rates*, keeping them at *5.25%–5.50%*.
According to the *CME FedWatch Tool*, only *4.4%* of economists foresee a rate cut—the first in over a decade—while *95.6%* expect the Fed to hold steady. Per *The Kobeissi Letter*, the chance of *no rate cuts in 2025* has jumped to *36%*, up from just 3% four months ago.
Market sentiment has shifted sharply:
- Earlier forecasts suggested *six cuts* in 2025. Now, expectations have dropped to *just one*.
- The probability of *two or more cuts* has fallen to *31%*.
*🔺 Rising Stagflation Concerns*
The U.S. is facing a *stagflation threat*—a mix of stubborn inflation and slowing growth:
- *Q1 2024 GDP* grew by only *1.6%*, below the expected *2.2%*, and well down from *3.4%* in the previous quarter.
- Meanwhile, *Core PCE inflation* rose from *2.0%* to *3.7%*.
