According to the source, Bitcoin (BTC) fell after the Federal Reserve cut the federal funds rate as traders focused on the FOMC’s guidance that inflation remains above target and policy will remain data-dependent, dampening risk appetite (source: Federal Reserve, FOMC statement). BTC traded lower on major spot venues during and after the policy announcement, signaling a risk-off reaction despite easier headline policy (source: TradingView BTCUSD intraday data; Coinbase BTC-USD price feed). The move underscores that forward guidance and inflation language, rather than the rate move alone, are steering near-term crypto flows and volatility (source: Federal Reserve, FOMC statement).

According to @simplykashif, Fed Chair Jerome Powell said a rate hike is not the base case right now and he is not hearing that view from anyone on the committee, source: @simplykashif on X (Dec 11, 2025). This guidance points to a pause bias versus additional tightening, reducing the immediate perceived probability of further rate hikes used by traders in macro-sensitive strategies, source: @simplykashif. For crypto markets, the removal of a near-term hike as the base case can affect positioning and volatility in BTC and ETH as desks recalibrate Fed path assumptions, source: @simplykashif.

According to @NFT5lut, Bitcoin is experiencing strong selling pressure, indicating weak sentiment for BTC and cautious positioning among traders, source: @NFT5lut. According to @NFT5lut, whether investors and institutions reinvest will depend on how favorable potential upcoming Federal Reserve interest rate cuts are, making Fed policy guidance a key catalyst for BTC direction, source: @NFT5lut. According to @NFT5lut, there is hope the US Federal Reserve will deliver news supportive to crypto investors and retailers, highlighting the market’s sensitivity to dovish signals, source: @NFT5lut. Based on @NFT5lut’s view, traders may focus on FOMC communications and rate-cut expectations as primary triggers for BTC inflows or continued outflows, source: @NFT5lut.

According to Michaël van de Poppe (@CryptoMichNL), the upcoming FED meeting on Wednesday is widely expected to result in no rate cut, a move that aligns with current market pricing and recent guidance from Federal Reserve officials (source: Michaël van de Poppe on Twitter, May 5, 2025). For crypto traders, this signals continued macroeconomic pressure on risk assets such as Bitcoin and Ethereum, as higher interest rates generally limit upside momentum. However, a surprise rate cut would likely trigger a strong bullish reaction across digital assets due to improved liquidity conditions and shifting investor expectations. Traders should closely monitor the FOMC statement and press conference for forward guidance, as any dovish shift could provide actionable signals for short-term trading strategies.