The post Trump-led Bitcoin rally to surge, but Fed’s rate decision may slow momentum appeared on BitcoinEthereumNews.com.

Donald Trump’s upcoming inauguration could spark another Bitcoin bullish rally. However, concerns over federal rates and the Federal Open Market Committee’s (FOMC) influence might dampen investor optimism or potentially lead BTC prices to slump. The next FOMC meeting is on Jan 29, and the probability that the new federal rates will fall between 425 and 450 base points is still on the higher end at 88.8%. Meanwhile, the likelihood of rates staying within the 400–425 base point range is 11.2%.  Fed rates may stay between 4.25 and 4.5 for much longer 10x Research’s founder, Markus Thielen, projected a strong start for BTC in early January. However, he still expects a slight price correction before the release of Consumer Price Index (CPI) inflation data on January 15, followed by another rally leading up to Trump’s inauguration. He believes a positive CPI result could help push Bitcoin prices up going into Trump’s inauguration. Despite his optimism, Thielen cautioned that the FOMC meeting on January 29 might temper Bitcoin’s momentum. He stated: “This momentum may wane, with the market likely retreating somewhat ahead of the FOMC meeting.” Markus Thielen With the last FOMC meeting on December 18, BTC’s prices dropped by almost 15%. At the time, the Feds only cut its key interest rate by a quarter-point, reducing the central bank’s target rate to 4.25% and 4.5%. In its statement, the Fed only projected there would be just two interest cuts in 2025, arguing that the inflation rate remains elevated. As the next Fed meeting nears, CME Group’s FedWatch predicts an 88.8% chance of federal rates being set between 425 and 450 base points, with only an 11.2% chance of rates staying at 400–425 base points. Thielen believes Feds’ communication will be critical in driving the Bitcoin rally According to Thielen, the Federal…

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Filed under: News - @ January 6, 2025 10:19 am