The main event of the day will be Fed Chairman Kevin Warsh’s first interest rate decision. No change in rates is expected, meaning markets will scrutinize the political statement, economic projections and post-meeting press conference for clues.
Here’s What Could Spark a Positive, Risk-Oriented Reaction From Bitcoin
The plot of points: This is a graphical representation of the direction that different members of the Fed see interest rates going. Fed funds futures currently put the chance of a 25 basis point increase between now and December at 80%. This is the reference point for reading the chart: if it shows that less than 80% of members expect an increase by December, the BTC price could react positively.
Warsh’s take on rates and inflation: Will Trump’s nominee deviate from market expectations and adopt a dovish tone, citing recent oil prices and AI-driven disinflation to lay the groundwork for the administration’s desired rate cuts? Or will it align with current market prices? In the first case, BTC could react positively again.
