Thursday's expected 25 basis point rate cut by the Federal Reserve is likely to be a non-event for bitcoin traders. Instead, they will be focusing on the central bank's commentary regarding President-elect Donald Trump's promised policies and their anticipated inflationary effects. The rate cut itself is already priced in, with traders assigning a nearly 100% chance of it happening. The market is interested in what Fed Chairman Jerome Powell thinks of Trump's tariffs plan and the potential inflation resurgence under his administration. Powell's comments during the press conference following the rate decision could affect the volatility of bitcoin and other risk assets. If Powell expresses concerns about Trump's policies, there may be downside volatility. However, if he avoids commenting on the matter, the BTC rally will likely continue. The Fed may err on the side of caution and pause its cutting cycle if large tariff increases are announced.



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