Summary
Bitcoin soared into more than 104,000 after the economic outlook contains a silent note by Powell.
The market was speculating as Jerome Powell has not given any indication of the direction of the interest rates.
According to Fed, Powell is under pressure to slash rates as instructed by Trump.
Chicago Fed President Goolsbee also associates the proposed Trump tariffs rollback with the reduction of rates.
Markets are not forecasting any change in June, but there are many who hold such views that several rate cuts can be made during the year.
The uncertainty in macroeconomics has fueled crypto traders to look at price levels of up to 105 000 BTC.
Bitcoin Jumps over the $104K as Powell Remains Quiet
Bitcoin has made the headlines again after breaking through the signal of 104000 dollars. This rise was after Federal Reserve Chair Jerome Powell has made an unlikely speech where he has not said anything about the economic future of the U.S. Although Powell did not give any directions, the markets reacted to an optimistically conservative manner, particularly within the crypto industry.
Speculators have turned to BTC now, hoping that the asset may reach as much as $105,000 after the increased uncertainty made it possible to develop a bullish mood in risk-on assets such as Bitcoin.
Trump, tariffs and the rate-cut puzzle
It was the first time Powell appeared in the public since his meeting with the former President Donald Trump. Though noting that there is no discussion of interest rates, Powell had a different view at the white house. The reports are that Trump had been pressuring Powell to cut down on interest rates, terming the current policy as a mistake.
Responding to this situation, the president of Chicago Fed Austan Goolsbee said:
“The reduction in rates will come to light only when the tariffs that Trump proposed are turned back. The Fed will wait and monitor the turn of events until then.”
This quote is a new twist in the market perspective because the federal reserve is very cautious in the political and fiscal uncertainties.
Despite the Expected Rate Hold in June The Traders Separated
According to information collected by the CME FedWatch Tool, 95.3 percent of the traders are confident that the rates would not change at the next meeting of the FOMC to follow, scheduled on June 17–18, leaving the range between 4.25 percent and 4.5 percent intact. Nonetheless, more people continue to anticipate the Fed reducing rates at least thrice in 2025, with some of them expecting it to begin in September.
However not every trader is persuaded. The percentage of those who believe that no rate cuts are going to happen at all in 2025 is around 28 percent as depicted by prediction platform Polymarket.
This polarization is symptomatic to a larger uncertainty in the market at large, particularly as there are constant changes in politics and debates around policies informing expectations.
What This Implies on Crypto Markets
Incertainty by Powell is turning out to be a positive indicator to the Bitcoin and wider crypto market at least in the short term. Meanwhile, as the conventional markets await a stronger signal in terms of monetary policy, cryptocurrency investors are taking advantage of instability and doubt.
The eyes are still fixed on the impact of the macroeconomic trends on the decisions of the Federal Reserve as we head to the June annual Fed meeting, with big focus on the effect of possible influences by Trump policies.
Should Powell eventually indicate a more dovish nature or tariffs proposed are rolled back, Bitcoin and other altcoins alike may gain still more steam.
Conclusion
Although Powell left too many questions to answer, it was sufficient to put Bitcoin above the $104,000 mark once more. Uncertainty exists in the air and political science is at work and traders are going through a very murky waterway so it appears to be at the moment, but the upper hand seems to take Bitcoin bulls.
Stick around to see what will transpire on June Fed meeting which may be crucial to both traditional or digital markets.