EddieJayonCrypto
5 May 25
Bitcoin dropped below $95,000 on Monday after President Trump threatened new tariffs ahead of the Federal Reserve's interest rate decision. Bitcoin was trading around $94,000, down 1.8% in 24 hours, with most altcoins falling more sharply. The Fed is expected to keep rates steady at 4.25%-4.5%, with...
Bitcoin prices slipped below $95,000 following President Trump's renewed tariff threats ahead of the Federal Reserve's anticipated interest rate decision. The cryptocurrency traded around $94,000, marking a 1.8% drop over 24 hours, while most altcoins experienced larger declines—XRP fell 2.7% to $2.12 and Solana dropped 0.8% to approximately $146.Market expectations indicate a 97% probability that the Federal Reserve will maintain its benchmark interest rate steady at 4.25% to 4.5% for the third consecutive meeting. Despite President Trump's repeated calls for rate cuts, the Fed is exercising caution, closely monitoring the economic impact of trade policies and their inflationary effects.Fed Chair Jerome Powell's upcoming comments may emphasize risks related to economic slowdown rather than persistent inflation from tariffs. This stance could encourage a rally in risk assets if it signals a leaning towards lower borrowing costs to stimulate the economy. Analysts suggest Powell might adopt a strategic ambiguity resembling Trump's trade negotiation tactics to preserve policy flexibility amid uncertain economic directions.Additionally, the Federal Reserve plans to release quarterly economic projections outlining the expected trajectory of interest rates through year-end, with previous forecasts anticipating two rate cuts in the current year.Cryptocurrencies and stocks had rallied recently due to softer tariff rhetoric from Trump but faced renewed pressure following new tariff threats, including a proposal to impose a 100% tariff on foreign movies aimed at protecting the U.S. cinema industry. This development adds to ongoing market uncertainty amid trade tensions.