#FOMCMeeting Tomorrow, June 18, 2025, the Federal Open Market Committee (FOMC) of the Federal Reserve of the United States will announce its next decision on interest rates, an event that has global financial markets, including the volatile world of cryptocurrencies, on edge. While general expectations point to the Fed keeping rates unchanged, the language of President Jerome Powell in the subsequent press conference will be key to determining the market's reaction, especially for risk assets like Bitcoin.

The odds, according to tools like the CME Group's FedWatch Tool, indicate a greater than 99% probability that interest rates will remain in their current range (4.25%-4.50%). This suggests that markets have largely discounted the absence of a cut this time. The Fed has maintained a restrictive monetary policy to combat inflation, which, while it has decreased, remains in focus. Geopolitical tensions and tariffs are also being considered in the equation.

✅️ How Does This Affect Bitcoin and Cryptocurrencies?

Historically, cryptocurrencies like Bitcoin tend to thrive in environments of greater liquidity, that is, when interest rates are lower. This is because lower rates make traditional lower-risk assets (like bonds) less attractive, pushing investors towards more volatile and potentially more profitable investments, like cryptocurrencies.

If the Fed maintains stable rates, the initial reaction of the crypto market could be moderate, as this decision is already largely priced in. However, the real attention will focus on Jerome Powell's speech. If Powell adopts a "dovish" tone, suggesting future monetary policy easing or expressing concern about economic growth, this could inject optimism into the market and lead to a rally in Bitcoin and other cryptocurrencies. Conversely, a "hawkish" tone, indicating a more restrictive stance or the need to keep rates high for longer, could exert downward pressure on risk assets.

In addition to Powell's tone, cryptocurrency investors will also be attentive to the economic projections that will be released. Any indication of a change in the future interest rate path, whether a delay or acceleration of cuts, will have a significant impact.

In summary, while the FOMC's interest rate decision tomorrow seems to be a non-surprise, volatility in the cryptocurrency market, and specifically in Bitcoin, will largely depend on Jerome Powell's words and the signals the Federal Reserve sends about its future monetary policy. Traders and cryptocurrency enthusiasts will need to remain vigilant for any indications that could dictate the next market move.