#MercadoCripto A series of geopolitical and macroeconomic events are combining this week, creating high volatility in both Bitcoin (BTC) and financial markets in general.

This Wednesday, the Federal Reserve (Fed), the US central bank, will announce the outlook for interest rates. While rates are expected to remain unchanged in the 4.25% to 4.5% range, all eyes are focused on the subsequent speech by Jerome Powell, the Fed's chairman.

When Powell offers an optimistic outlook for the economy, stock markets and cryptocurrencies tend to react with consolidation or upwards. Otherwise, they usually respond downwards, as CriptoNoticias reported.

The official reiterated in the first quarter his projection of making two rate cuts this year, which would increase available liquidity in the economy. However, on several occasions, he indicated that there was no rush to implement this policy, given that the economy remained "generally strong" with a "solid" labor market.

The Fed is also taking a "wait-and-see" approach to the decision, while they evaluate the impact of US President Donald Trump's tariff measures. While the president paused the tariffs on imports he had imposed, bringing relief to the markets, he is maintaining those imposed on China, sparking uncertainty in the economy.

However, this week is key in this "trade war," as senior US officials and their Chinese counterparts will meet in Switzerland this weekend to discuss the matter. The meeting raises hopes for a possible de-escalation of the trade war.

Representatives of the Trump administration have also already met with officials from various countries for trade negotiations, which has allayed fears that the measures will not be eased, triggering higher inflation and a recession.