After January, the Federal Open Market Committee (FOMC) will start 2025 with the first big decision on interest rates.
Perhaps the Fed Chairman Jerome Powell can also release the official $ JPOW token in Solana. surely.
Aside from jokes, the market is preparing for shock at the FOMC meeting scheduled for January 29. No one is more unstable than Bitcoin holders who are watching potential aftershocks in the cryptocurrency industry.
FOMC in Focus Current interest rates
So far, the market has moved almost unanimously under President Donald Trump. The FOMC will keep the interest rate this month from 4.25%to 4.5%, and according to CME data, there is a 99.5%chance that there is no change in interest rates.
But practical measures can occur at the end of this year, when inflation alleviated and major indicators stabilize. Moreover, the spring interest rate cuts are growing.
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Government data reflects the mixed situation in 2025. As mentioned by Lisa Cook Fed Governor, employment is still hot and wage growth is surpassed. But inflation seems to be calming.
In December, the CPI showed a management level, and the core inflation rose slightly from 2.4%in September to 2.9%. If the inflation pressure persists, interest rate cuts may not be soon.
Bitcoin is waiting for the next movement of FOMC
Michelle Bowman, president of the Fed, firmly opposes the additional interest rate cuts this month due to stubborn inflation and recovery economy. “There was no continuous progress in lowering inflation, and considering the economic activity and the continuous strength of the labor market, no action could be taken at the December meeting.”
Christopher Waller, Governor, pointed out that the core PCE inflation fell slightly to 2.8%, and was more hopeful, sending an optimistic signal that it would continue to fall towards 2%. He said in a January 8th speech that “if inflation is close to our target 2%, it will be appropriate.”
Bitcoin, meanwhile, was trapped between $ 100,000 and $ 110,000, with the cryptocurrency market holding a breath before the Fed’s next action. Analysts expect not to take any action until the FOMC ruling is issued. Trader Krillin said, “Assuming something surprising does not happen at the FOMC meeting, Bitcoin is likely to be transverse by the end of this month.”
We can also see the cryptocurrency pushing the Bitcoin strategic reserve announcement that some people expect today.
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The possibility of resumption of quantitative easing also increased. If the Fed resurrects QE to inject liquidity, high -risk assets, such as Bitcoin, can be shocked, such as plugging a fork into the outlet.
The extensive meaning of high interest rates
The Fed’s 2025 interest rate decision is not only affecting Bitcoin, but also a moment in which risk assets are generally risk. While pigeons can revitalize stocks and tech stocks, the Fed’s careful attitude can make the market tense.
The results of January are the positions, leaving March and May as a real battlefield. The risk of Bitcoin between institutional adoption and liquidity decrease is sharper than ever.
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2025 FOMC Interest Rate Determination: The meaning of cryptocurrency was first posted in 99bitcoins.