This week sees crucial developments in the digital currency market, influenced by economic and regulatory decisions in the United States, reflecting on the performance of digital assets.
🇺🇸 United States: Awaiting Federal Reserve Decision
📊 Key Events in Digital Currencies This Week (May 5–11, 2025):
The Federal Reserve began its meeting on May 6, and is expected to announce its decision on interest rates on May 7. Despite pressure from President Trump to lower rates, forecasts suggest that current rates will be maintained, with a possibility of a cut later this year if economic challenges persist.
Weak Economic Data: Recent data showed a contraction in GDP by 0.3% in the first quarter of 2025, and an increase in the trade deficit to $140.5 billion in March, adding pressure on economic policymakers.
🏛️ Regulatory Developments: Tensions in the U.S. Congress
Cancellation of Legislative Session: Political disagreements over the Stablecoin Regulatory Act (GENIUS Act) led to the cancellation of a congressional hearing, especially after Democrats objected to the Trump family's involvement in launching a new stablecoin.
New Bill: Senator Jeff Merkley plans to introduce the 'End Digital Currency Corruption' bill, aimed at preventing government officials and their families from issuing or promoting digital currencies, in an effort to enhance transparency and combat corruption.
💰 Performance of the Digital Currency Market
Bitcoin Stability: Bitcoin is currently trading around $94,000, with its market dominance rising to the highest level in four years, indicating a shift of investors from altcoins to Bitcoin as a safe haven.
Volatility of Altcoins: Ethereum (ETH) and Ripple (XRP) have seen a slight decline, with investors awaiting Federal Reserve decisions and their impact on the market.
🏛️ Government Initiatives: New Hampshire adopts a reserve of digital currencies
Pioneering Move: New Hampshire has become the first U.S. state to create a reserve of digital currencies, allowing up to 5% of its public funds to be invested in Bitcoin and precious metals, potentially encouraging other states to take similar steps.
As these developments continue, investors are advised to closely follow news and analyses, and make informed investment decisions based on a comprehensive understanding of the market.