$BTC

The decision by the Federal Reserve of the United States (Fed) to maintain interest rates at 4.25%–4.50% during its meeting on May 7, 2025, has significant implications for Bitcoin (BTC) and financial markets in general.

🏦 Economic context and Fed decision.

The Fed has chosen to keep interest rates unchanged for the third time, highlighting increased uncertainty related to the trade policies of the Trump administration, particularly the imposition of new tariffs. Fed Chairman Jerome Powell indicated that he is not in a hurry to lower rates, preferring to take a "wait-and-see" approach given the potential risks of increased inflation and unemployment.

This decision comes after an economic contraction of 0.3% of GDP in the first quarter of 2025 and a core inflation rate of 2.6%, slightly above the Fed's target of 2%.

📊 Impact on Bitcoin (BTC)

BTC is currently trading around $98,690, with a gain of 2.08% on the day.

Factors influencing BTC:

Accommodative monetary policy: The decision to maintain interest rates may make traditional assets less attractive, prompting some investors to turn to alternative assets like BTC.

Economic uncertainty: Trade tensions and inflationary risks may enhance BTC's appeal as a safe haven.

Market sentiment: Investors anticipate a potential reduction in interest rates, which could boost demand for BTC.

🔮 Short-term outlook

Analysts remain divided regarding the future trajectory of BTC. Some predict a continuation of the upward trend, while others warn of increased volatility due to economic uncertainties.