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Crypto Soars as BTC Nears $100k while US Fed Keeps Interest Rates Steady
- Bitcoin has risen to US$98,680, approaching the US$100k mark amid the Federal Reserve’s decision to hold interest rates steady.
- Fed Chair Jerome Powell warned that Trump’s tariffs would increase prices for US consumers, weaken economic growth, and potentially lead to higher unemployment.
- The Federal Reserve last cut rates in December 2024, with Powell indicating tariffs make future rate reductions unlikely in the near term.
- According to analyst Jim Bianco, the probability of June rate cuts has plummeted from 78% to 20% due to post-Liberation Day data.
Most cryptocurrencies rallied on Thursday after the US Federal Reserve decided to keep interest rates steady. Bitcoin (BTC) is up 4 per cent week-on-week and 2 per cent on the daily chart and currently trades at US$98,680 (AU$152,903), eyeing the US$100k (AU$154.8k) barrier.
Policymakers at the Fed have sent out warnings over Trumpâs erratic tariffs, which have dominated the news cycle for weeks and kept markets on edge. Fed Chair Jerome Powell warned that the tariffs would lead to higher prices for US consumers and weaken US economic growth.
Related: Trumpâlinked Crypto Windfall Triggers Democratic Mutiny, Puts GENIUS Act on the Brink
Can We Still Expect âHigher for Longerâ?
Trumpâs actions also have increased âthe risks of higher unemployment and higher inflationâ, as per the Fed. The Fed last cut rates in December 2024 â Powell said tariffs make it unlikely that rates would come down soon:
If the large increases in tariffs that have been announced are sustained, they are likely to generate a rise in inflation, a slowdown in economic growth, and an increase in unemployment.
Fed Chair Jerome Powel Back in Australia, the Reserve Bank of Australia (RBA) is making its decision on interest rates on May 20. Most analysts expect a cut, which would see the cash rate fall from 4.10 per cent to 3.85 per cent.
Expert Issues Dire Warning About June Meeting
So, what about the rest of 2025? According to Jim Bianco, well-known commentator and macro researcher at Bianco Research, the likelihood of a US June cut has plunged to just 20 per cent, down from 78 per cent âright before the release of the April ISM (the first post-Liberation Day monthly economic release)â.
Bianco added that in one short week, probability for June cuts has all but evaporated:
So, in the space of a week, the combination of post-Liberation Day data showing an economy that is fine, and the Fed presser, the June rate cut effectively disappeared from the market pricing.
Jim Bianco 
Read also: Mark Cuban Calls Out Trumpâs Crypto Gambit: âMemecoins Are a Bad Exampleâ
Author
Aaron Feuerstein
Aaron Feuerstein is a freelance writer based in Melbourne. His focus is on decentralised finance and the regulatory space surrounding blockchain. He holds a Master's in Accounting. When he is not studying the latest legal case, he enjoys his time as a modest but eager hobby cook.
