Digital currency markets have experienced significant fluctuations recently. Before Trump’s speech, the price of Bitcoin (BTC) surged to nearly $88,500, but after the announcement of new tariffs, a wave of selling occurred, leading to price drops. Traders are currently focused on the path of interest rate cuts by the Federal Reserve. Markets expect four interest rate cuts in 2025, each by 0.25%, to be implemented in June, July, September, and December. Interest rate cuts usually benefit high-risk assets like Bitcoin, as cash flow moves towards other markets, including digital currencies. However, some analysts, including those at Morgan Stanley, believe the Federal Reserve may not cut interest rates this year due to Trump’s new tariffs potentially keeping inflation high. Some Federal Reserve officials have emphasized no immediate need for interest rate cuts. Philip Jefferson, Vice Chair of the Federal Reserve, stated that they will not rush to change policies until the U.S. economy shows no serious weakness and inflation decreases. The increase in trade tariffs has also raised the risk of an economic recession. Luke Tilly, senior economist at Wilmington Trust, warned that the likelihood of a recession in the United States has increased to 50%. He cautioned that if tariffs remain in place, the U.S. economy may enter a period of reduced growth in the next three months. Jerome Powell, Chair of the Federal Reserve, is set to speak today after the release of the U.S. Non-Farm Payrolls (NFP) report. His remarks could provide further insights into future monetary policies. If today’s NFP report reflects labor market weakness, the Federal Reserve may cut interest rates sooner than expected, benefiting Bitcoin and other cryptocurrencies. Otherwise, selling pressure on the market may resume. You can view the live prices of all tokens and cryptocurrencies on the momentary price page.
