Fed Financial News

Despite hotter-than-expected inflation data, the Bitcoin price defied expectations and surged in value on Wednesday, even as the US Federal Reserve’s rate cut story was thrown into doubt.

Fed rate cuts highlighted Bitcoin’s bullish momentum in 2024. However, the price action in 2025 offers to be more proactive, especially considering the recent momentum. While it has been evident that the impact of the US Presidential election has finished supplementing Bitcoin’s bullish movements, analysts believe crossing the $100,000 psychological boundary uniquely positions the world’s largest cryptocurrency for more noteworthy movements in 2025. However, numerous predictions have filled the digital space in the last few weeks over Bitcoin’s probable future in 2025, conservative and otherwise, there have been few that have supportive data regarding the claims. Bitcoin conservatives put Bitcoin a quarter below the $100,000 mark, with many others putting it between $250,000 and 1 million. Predicting a risk asset such as Bitcoin’s future, both short and long-term, remains challenging at the best of times. However, with a number of significant events playing a key role in 2025, Bitcoin’s future prospects remain bright. With a pro-crypto hierarchy assuming power across world governments, the crypto ecosystem is expected to receive a much-needed boost in the coming months. However, institutional and retail adoption alongside regulatory reforms are expected to be the catalysts to growth and value creation for Bitcoin.

The Bitcoin (BTC) price has stumbled below $65,000 in wake of the latest Fed policy decision, where the central bank held interest rates steady at 5.25-5.50% as expected, and Fed chair Jerome Powell indicated a potential rate cut coming as soon as September.

The number of United States adults reporting crypto ownership or usage has seen a significant decline, according to the latest annual household survey conducted by the Fed.

The Bitcoin (BTC) price is pumping in wake of the latest Fed policy announcement, which saw the bank leave interest rates unchanged at 5.25-5.5% for a fifth successive meeting and continue to forecast three rate cuts in 2024.

Bitcoin eased to a one-week low in volatile trade on Friday, as investors took profit from its run to a record high and as another upside surprise on U.S. inflation dimmed prospects of early rate cuts there and dented demand for riskier assets. Bitcoin fell more than 5% in the Asian session to bottom at $66,629.96, before paring some of its losses to last trade 3.5% lower.

The U.S. Federal Reserve Chair Jerome Powell has made it clear to the Senate Banking Committee that the Fed has no imminent plans to launch a central bank digital currency (CBDC).

The Bitcoin (BTC) price briefly retook $68,000 on Thursday amid a dip in the US dollar following dovish remarks from US Federal Reserve Chair Jerome Powell, coming within about 2% of the record highs it printed earlier in the week.

In the minutes from the Federal Open Market Committee last month, the central bank dampened market hope by forecasting only three 25bps cuts throughout the year, while futures markets predict six.

Stronger-than-expected US November Retail Sales data released earlier on Thursday triggered a sudden near-$1,500 drop in the Bitcoin (BTC) price from just under $43,000 to around $41,500.

Bitcoin soared to its highest price so far this year, as investors took on more risk ahead of comments from Federal Reserve Chair Jerome Powell which could give guidance on whether the US is closer to lowering interest rates. The world’s largest cryptocurrency rallied as much as 2.87% to a high of $38,834 on Friday. Prices of other digital assets tracked by Bloomberg, such as Ether and Solana, were also up more than 2%. Bitcoin’s jump constitutes the token’s highest value since May 5 last year, just before the collapse of the TerraUSD stablecoin ecosystem rocked the sector and began a steady decline in asset prices. European stocks also advanced and the dollar fell, with Powell set to speak at Spelman College in Atlanta later on Friday. US futures edged higher while Treasuries were steady, as investors tried to gauge whether November gains across asset classes still have further to run. “The macro environment is expected to remain a robust tailwind for crypto,” said Markus Thielen, head of research and strategy at Matrixport, in a note on Friday. “Another decline in inflation is anticipated, prompting the Federal Reserve to likely initiate interest rate cuts. Combined with geopolitical crosscurrents, this healthy dose of monetary support should push Bitcoin to new highs in 2024.”

Fed Chair Jerome Powell’s tone on the risks faced by the US economy just shifted in a dovish direction, spurring a pump in the price of Bitcoin (BTC) to new yearly highs at $39,000.

At the start of this month, the central bank held interest rates for the second successive meeting, seemingly bringing an end to the hiking cycle.

Bitcoin (BTC) is trading at daily lows in the $36,100s in wake of the release of the latest US inflation figures for October, despite the numbers coming in lower than expected across the board.

Following the release of the inflation figures, markets solidified their belief the Fed had finished its hiking cycle.

Ether (ETH), the cryptocurrency that powers the smart contract-enabled Ethereum blockchain that remains the dominant chain in the DeFi, NFT and broader web3 industries, stole the spotlight from its bigger rival Bitcoin (BTC) this week, and was last up close to 11% since Sunday after BlackRock filed to set up a US spot Ethereum ETF with Nasdaq.

Economic data released earlier on Friday revealed a larger-than-expected slowdown in the US jobs market in October, triggering downside in US bond yields and a pump in the US stock market and price of Bitcoin (BTC), which was last around $34,600.

The Bitcoin (BTC) bulls have regained control to push the price of the world’s largest cryptocurrency by market capitalization back above $35,000, following a volatile trading session packed with important macro risk events, including the latest policy announcement from the US Federal Reserve.

Hotter-than-expected US Consumer Price Index (CPI) inflation numbers did little the shift sentiment in the crypto market on Thursday.

Industry commentators have said the Federal Reserve's job is not done yet, given the stubbornly high inflation rate.

Bitcoin (BTC), the world’s first and largest cryptocurrency by market capitalization, has seen whipsaw price action since the release of a much stronger-than-expected US jobs report for September.