Here’s how the Fed and Jerome Powell could shape Bitcoin’s road ahead
The post Here’s how the Fed and Jerome Powell could shape Bitcoin’s road ahead appeared on BitcoinEthereumNews.com.
Fed hinted at 2025 rate cuts, potentially boosting crypto and traditional markets alike Tariff tensions and inflation risks continue to stir uncertainty in crypto investor sentiment Amid a sharp pullback in the crypto market, a glimmer of optimism has emerged from the U.S. Federal Reserve. Fed Waller alludes to interest rate hikes In a recent statement, Fed Governor Christopher Waller hinted at the possibility of interest rate cuts by the end of 2025. This statement came as the total crypto market capitalization slipped from over $3.5 trillion to just above $3.2 trillion in the last ten days, with Bitcoin [BTC] struggling to regain momentum after peaking near $112,000. Waller noted, “I would be supporting ‘good news’ rate cuts later this year.” He went on to add, “I see downside risks to economic activity and employment and upside risks to inflation in the second half of 2025, but how these risks evolve is strongly tied to how trade policy evolves.” What could be the Federal Reserve’s next step? Popularly, Trump’s aggressive tariff manoeuvres intend to secure favorable trade terms for the U.S. However, they’ve also injected fresh volatility into an already turbulent crypto market. Amid this uncertainty, investors are closely watching the Federal Reserve’s next steps. Hence, if interest rates are lowered in the coming months, it could trigger a significant market upswing. Remarking on the same, Fed Chair Jerome Powell noted, “It remains critical that the Fed understand the policies and practices of other governments and central banks, and their implications for the U.S. economy and financial markets. Exchange rate policy, of course, is now firmly in the hands of the U.S. Treasury.” What’s more? Needless to say, the Fed’s updated policy framework acknowledges the economic shifts since its last major review in 2020, emphasizing the need for a recalibrated…
Filed under: News - @ June 4, 2025 6:29 am