The first Federal Reserve (FED) interest rate decision of 2025 is expected to have an impact on the Bitcoin and cryptocurrency markets. It is widely believed that the FED will keep interest rates constant, and Bitcoin is expected to maintain its current level. However, if the FED surprises the market with a 25 basis point rate cut, it could help Bitcoin and cryptocurrency markets recover, according to analyst Matt Mena. Mena believes that a rate cut could act as a major catalyst, triggering a rally in riskier assets like Bitcoin. The statements of FED Chairman Jerome Powell will also be important, as well as whether the FED will consider President Donald Trump's call to lower interest rates. If the FED signals two or more rate cuts in its statement, it could provide the catalyst for Bitcoin to rally above $110,000 and test psychological levels of $125,000 and $150,000. The market currently expects no rate cut, with a 99.5% probability, according to CME FedWatch. Additionally, the release of the Personal Consumption Expenditures (PCE) price index, which influences FED interest rate decisions, the day after the FED meeting could also impact Bitcoin. Colder than expected data may rally BTC, while the opposite may decrease BTC.



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