Bitcoin saw a modest uptick on Saturday following a speech by U.S. Federal Reserve Chair Jerome Powell, who refrained from offering any clear guidance on the nation’s economic outlook. BTC bounced back from a low of $103,700 and held steady above the $104,000 mark, as traders now anticipate a possible climb toward $105,000.
Trump, Tariffs, and the Future of Rate Cuts
This marked Powell’s first public appearance following his meeting with President Donald Trump. Although the Federal Reserve stated that interest rates were not discussed, the White House suggested that Trump urged Powell to reduce them, calling the existing monetary stance a “mistake.”
According to CME data, markets currently estimate a 95.3% chance that the Federal Reserve will keep interest rates unchanged at 4.25%–4.5% during the June 17–18 meeting. Despite this expectation, many traders still believe the Fed could implement three rate cuts before the year ends, potentially in September, October, and December.
At the same time, data from prediction platform Polymarket shows that 28% of traders believe no interest rate cuts will take place at all in 2025.
Chicago Fed President Austan Goolsbee stated that rate cuts would only be considered if the tariffs proposed by Trump are rolled back. Until then, the Federal Reserve plans to remain patient and monitor the evolving situation.
What Lies Ahead?
Although Powell provided no clear guidance, markets were left uncertain, yet Bitcoin responded positively. With the June Fed meeting drawing closer, both crypto enthusiasts and traditional investors are closely watching for any potential policy shifts that could significantly impact the markets.
