How the Fed and Powell will impact Bitcoin’s future path

Fed hints at rate cuts in 2025, could boost crypto and traditional markets
Tariff tensions and inflation risks continue to drive uncertainty in crypto investor sentiment
Against the backdrop of a sharp correction in the crypto market, there have been glimmers of optimism from the Fed.
Fed’s Waller hints at rate hikes
Fed Governor Christopher Waller hinted at a possible rate cut by the end of 2025 in his recent statement. The statement comes as the total cryptocurrency market cap has slipped from $3.5 trillion to just over $3.2 trillion over the past ten days, and Bitcoin [BTC] is struggling to regain momentum after peaking near $112,000.
What could the Fed do next?
It is widely believed that Trump’s aggressive tariff moves are intended to secure favorable trade terms for the United States. However, it has also injected new volatility into the already volatile cryptocurrency market. Amid this uncertainty, investors are closely watching the Fed’s next move. Therefore, if rates are lowered in the coming months, it could spark a significant rally in the market.
What else?
Needless to say, the Fed’s updated policy framework acknowledged the economic changes since its last major review in 2020, emphasizing the need to recalibrate tools and communications. However, its response to soaring inflation in 2022 hit crypto hard, causing Bitcoin’s value to plummet by nearly 70%, wiping out $2 trillion in market value.
While 2023 brought a wave of recovery and restored investor confidence, the cryptocurrency space remains sensitive to interest rate dynamics. Therefore, as the Fed signals further strategic adjustments, the future path of digital assets remains uncertain. It depends largely on future policy direction and how the market reacts to it. BTCUSDT BTCUSD BTCUSD BTCUSD BTCUSD BTCUSD