Despite crypto news shaping market momentum in recent times, the macroeconomic focus on Fed Chair Jerome Powell’s Speech still has a strong impact on the industry’s direction and crypto prices overall.
There is a broad uncertainty in the financial world amid concerns around interest rates and monetary policies in the US.
With growing pressure from President Donald Trump, Jerome Powell is expected to make critical economic pivots in the coming weeks.
Market analysts are eyeing any update from the FOMC and Fed Chair Speech in the coming week on how it will impact Bitcoin and altcoins.
Will FOMC Make Interest Rate Pivot?
Thus far this year, the expectations that the Federal Open Market Committee will lower its interest rate has remained high.
In its defence, the FOMC has cited economic models that reflect the uncertainty brought about by President Donald Trump’s tariff wars.
However, over the past few weeks, the country has inked very important trade deals with some of its core partners.
Most importantly, President Trump said a trade deal agreement has been reached with China. This removes one of the biggest tariff headwinds.
Proponents of rate cuts believe this shift is enough for the FOMC and Jerome Powell to cut interest rates.
If other positive market metrics, such as US CPI inflation and PMI data, are factored in, then the odds of a rate cut appear higher.
These economic and inflationary indicators have performed better than expected over the past few months. In May, the CPI data showed a monthly increase of 2.4% and an annual increase of about 2.9%.
Crypto prices may see a big boost if the projections of a rate cut are implemented in the coming week.
More Economic Uncertainty To Watch
Considering his current position, any economic or market commentary from Jerome Powell is likely to change market direction.
One uncertainty that still looms is the future of Jerome Powell as the Chairman of the Federal Reserve.
In the past few weeks, insinuations that President Trump may fire him have taken center stage due to critics claiming he is holding back on cutting interest rates.
Despite these claims, the US President has confirmed that he will not relieve Powell of his duties until the end of his tenure.
However, commentary from the Fed Chair after the FOMC meeting this coming week may change the entire conversation.
Should the market perceive any instability in the Federal Reserve’s leadership, it may further destabilize Bitcoin and altcoin prices.
Crypto Prices: Bitcoin and Altcoins In the Spotlight
In the past week, the geopolitical conflict between Israel and Iran derailed the consolidation of Bitcoin and altcoins.
BTC price fell from around $107,000 to a low of $102,000, with over $1.4 billion in crypto liquidations in a single day.
Altcoins like Ethereum, XRP, and Binance Coin also shed a significant portion of their valuation in the past week.
As of this writing, Bitcoin is trading for $104,761, down 1.02%. ETH’s price is also down 2.11% in 24 hours to $2,513.
The drawdown may be thinning out as whale accumulation is now taking the center stage.
Should the crypto market record a big break from the FOMC meeting ending on June 18, a breakout may be recorded overall.
Per market expectation, BTC may breach its recently scored all-time high to a peak valuation of $120,000.
