The Federal Reserve Open Market Committee, which consists of 12 officials, is scheduled to announce its interest rate decision at 18:00 UTC on Wednesday, followed by a press conference by Chairman Jerome Powell, which will take place half an hour later.
CME Group’s FedWatch tool shows that despite repeated demands for lower borrowing costs, the central bank is likely to keep the ground again and not change interest rates in the 4.25%-4.50% range.
Therefore, rate decisions are a natural conclusion, and crypto traders may focus on dot plots of interest rates, namely graphical representations that record each employee’s forecasts for interest rates.
“Traders are focusing on dot plots as the rate is expected to be pending. Predictive cuts below two harden Higher Longer The story; a ridiculous surprise brightens the dollar and could unsubscribe from the code. Until then, patience is the rule,” said XBTO, crypto trading and market production company.
Hawkish dot plots suggesting a lower rate reduction suggest that it could put pressure on Bitcoin and the broader crypto market. The BTC rally has already exceeded $100,000, adding geopolitical tensions in the Middle East to the uncertainty of trade war-driven inflation.
“Throughout rate reductions have already fallen sharply during 2025, from the first 100 basis points to the current 50 basis points. This revision is driven by a resilient labor market and inflation.
The Hawkish Fed may breed Bitcoin’s negative side volatility, but could exacerbate the US financial situation by adding national debt service costs, thereby enhancing the long-term appeal of assets such as gold and Bitcoin.
