- Fed keeps the rates stable; Investor Letie usually keeps the cryptomarkt flat.
- Worldwide tensions and bearish signals indicate a possible bitcoin –
Despite a modest increase in Bitcoin’s [BTC] The daily performance, the wider crypto market, continues to enter water.
At the time of writing, BTC floating Almost $ 104,794, as a result of a flat route after the decision of the American Federal Reserve to keep the interest rates stable in the midst of persistent inflation.
Markt responds to Fed’s rate reduction decision
What is interesting here is that, while the coins market is stuck, ETF’s strength.
Spot Bitcoin ETFsFor example, the inflow of $ 388.3 million saw, while Ethereum ETFs attracted $ 19.1 million, according to Distant investorsindicate long -term institutional interest, even in a cooling market.
For context, the Federal Reserve decided to keep the interest rates unchanged at 4.25% to 4.5%, so that the cryptom markets, according to The New York Times.
Market participants also seem to stop in the midst of uncertainty about the future course of the FED, especially with officials who are reportedly divided over the timing of potential tariff reductions.
Trump hits Powell
Accounted to the tension, President Donald Trump, ruled his long-term criticism of FED chairman Jerome Powell and called him only a few hours before the policy announcement.
Trump argued that the benchmark percentage of the central bank should be at least two percentage points lower, which underlines the political pressure around the monetary attitude of the FED.
Trump made the offhand remark outside the White House, where he said“
“So we have a stupid person. To be honest, you probably won’t cut today. Europe had 10 cuts, and we didn’t have one. And I think he is a political guy, I don’t know. He is a political guy who is not a smart person, but he costs the country a fortune.”
What are the figures that point to?
Although recent inflation data has shown signs of relaxation, the Federal Reserve remains hesitant to shift its monetary attitude.
The consumer price index for May rose by only 0.1%, which means that annual inflation fell to 2.4%, closer to the goal of the FEDs 2%.
Similarly, the expenditure for personal consumption of April saw minimal growth.
Despite these improvements, however, FED officials remain careful, with reference to persistent uncertainties associated with global economic pressure, including the consequences of the trade policy of former President Donald Trump.
The emphasis on the unpredictability of the scope and duration of rate -related effects, Fed Powell said,
“We know that time will come. It can come quickly, it can’t come quickly. As long as the economy is solid, as long as we see the kind of labor market that we have, and reasonably decent growth and inflation that go down, we are the right thing to be where we are.”
FED rate reduction is not the only cause behind the flat market
Although the position of the Federal Reserve has certainly played a role in the damping market sentiment, broader global developments have also contributed to the recent volatility of Bitcoin.
From renewed tariff threats under Trump to escalating geopolitical tensions between Iran and Israel, external pressure weigh heavily on the trust of investors.
Indicators on the chain also suggest a bearish-trend, with more wallet addresses that are in accordance with bearish activity than Bullish, points to a potential price baptism that is ahead.
Source: Intotheblock
Because Bitcoin often sets the tone for the wider crypto market, any significant decrease can cause widespread corrections.
That is why, while several factors come together, the road is uncertain for Bitcoin, so that investors are sharp while waiting for the next decisive shift.