This is how the Fed and Jerome Powell can shape the future path of Bitcoin

In the context of the crypto market experiencing a significant fall, the Federal Reserve America (Fed) has brought a new ray of hope.

Fed Waller hints at the possibility of rate cuts

In a recent statement, Fed Governor Christopher Waller hinted at the possibility of a rate cut by the end of 2025. This statement came as the total market capitalization of the crypto market has fallen from over $3.5 trillion to just above $3.2 trillion in the past ten days, while Bitcoin (BTC) is struggling to regain momentum after reaching a peak of nearly $112,000.

Waller emphasized: "I will support the 'good news' interest rate cut at the end of this year."

"I observe that there are falling risks for economic activity and employment, as well as rising risks for inflation in the second half of 2025. However, the development of these risks closely depends on how trade policy progresses," he also added.

The next step of the Fed

Trump's aggressive tariff moves to secure favorable trade terms for America have created new volatility for an already turbulent crypto market. In this context of uncertainty, investors are closely monitoring the Federal Reserve's next steps.

If interest rates are cut in the coming months, it could stimulate a strong growth surge in the crypto market.

Fed Chairman Jerome Powell emphasized: "It is important for the Fed to fully understand the policies and practices of other governments and central banks, along with their impacts on the economy and the financial markets of America. Exchange rate policy, of course, is currently in the hands of the U.S. Department of the Treasury."

Things to note

The Fed's updated policy framework has recognized economic changes since the last major review in 2020, emphasizing the need to adjust communication tools and modalities.

However, the Fed's response to rising inflation in 2022 caused a major shock to the crypto market, leading to a fall in the value of Bitcoin by nearly 70% and wiping out 2 trillion USD from the market.

Although 2023 has brought a new wave of recovery and confidence to investors, the crypto space is still sensitive to interest rate moves. Therefore, as the Fed signals further strategic adjustments, the road ahead for digital assets remains uncertain, depending on future policy directions and the market's reaction to these changes.

Mr. Teacher