The post Bitcoin Eyes Fed’s Next Move Ahead of FOMC appeared on BitcoinEthereumNews.com.

Bitcoin (BTC) clings to $94,350 ahead of tomorrow’s high-stakes FOMC meeting, with traders bracing for wild price swings as the Fed weighs stubborn inflation against White House pressure for rate cuts. The CME FedWatch Tool shows a 98.2% probability of rates remaining unchanged, while technical indicators suggest a potential $100K breakout thesis. Fed Chai Powell’s Dilemma: Inflation Persistence vs. White House Pressure Trump’s tariffs and his comments show that the White House has been increasingly vocal about the need for rate cuts, However, Fed Chair Jerome Powell remains unconvinced and has stuck to his “wait-and-see” stance. “Powell won’t cut rates based on economic forecasts alone. The Fed needs to see actual deterioration in employment data before making its move,” notes a former high-ranking Fed official who worked alongside him. Despite the tension between political desires and economic reality, the Fed Watch Tool currently shows overwhelming consensus (98.2% probability) that rates will remain unchanged at 425-450 basis points tomorrow. This shows that Powell is ready to wait it out. It also highlights the disconnect between market expectations and political pressures. On the other hand, stubborn inflation data continues to complicate the Fed’s decision-making process, which will be a key topic to observe in the FOMC meeting on May 7. Treasury Buybacks & Recession Signals: Mixed Messages for Bitcoin In a significant yet underreported development, the Fed announced a $5 billion monthly Treasury buyback program that effectively maintains its position as a net buyer. This technical adjustment caps long-end yields even as short-term rates edge higher, creating a complex yield curve dynamic that Bitcoin traders are still coming to terms with. The economic outlook remains precarious. Recession probability models now show a 57% chance of economic contraction in 2025 – better than last week’s 63% reading, but still alarmingly high. This uncertainty,…

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Filed under: News - @ May 6, 2025 7:25 pm