Critical Day Arrived: FED Interest Rate Decision Expected Today for Bitcoin! What Time Will It Be Announced? Here Are the Expectations and Everything You Need to Know!

Bitcoin surged above $97,000 following the news that the US and China would continue discussions on customs tariffs.

At this point, the announcement of talks between the two countries has improved investor confidence in the crypto market, leading to an increase in major altcoins such as Bitcoin, Ethereum (ETH), XRP, Cardano (ADA), and Dogecoin (DOGE).

With the easing of the trade war between the US and China, attention has turned to today’s FED decision, an important macro event that could determine Bitcoin's short-term direction.

After the FED kept interest rates unchanged in January, dollar, gold, stock, and cryptocurrency investors are curious about the date of the first interest rate cut in 2025, while the uncertainty remains whether the FED will surprise us.

When Will the May FED Interest Rate Decision Be Announced?

The FED will announce its May interest rate decision on May 7, 2025, at 21:00 TRT.

Following the decision, FED Chairman Jerome Powell will make verbal statements at 21:30.

Which Direction Are Expectations Focusing?

While 98% of the market expects the FED to keep its policy rate stable at the range of 4.25% - 4.50%, only a small 2% expects the rates to be lowered to the range of 4.00% - 4.25%.

At this point, the market does not expect the FED to make a rate cut due to the unfavorable conditions created by tariffs.

Experts believe that the FED will prefer to wait and see how the new tariffs will affect the US economy before changing interest rates.

Deutsche Bank analysts believe that the FED will pause interest rate cuts for a longer period to see how the economic picture will shape up in the coming months and will keep interest rates steady this month.

Ritch Ratings President of Economic Research Olu Sonola stated that the recently released employment report was good in every aspect. Noting that the labor market indicated resilience rather than recession in the last report, Sonola argued that the recent economic data was also positive but that the FED would wait on interest rate cuts.

Powell's Statements Are Very Important!

It is unlikely that the FED will surprise with an interest rate cut, while signals from the policy text and Powell's statements are expected to have an impact on the direction of the markets.

At this point, Powell's stance on inflation, growth, and interest rate cuts will guide Bitcoin and the crypto market.

Experts indicate that Powell is cornered, stating that Powell and the FED face a difficult choice.

"Keep interest rates steady and face the risk of further economic slowdown, or start cutting rates and take the risk of reigniting inflation"

U.S. President Donald Trump is also pressuring the Fed to lower interest rates.

What Awaits Bitcoin and the Crypto Market?

It is noted that if Powell's tone in his speech is moderate, a new upward momentum in Bitcoin and altcoins can be expected, while a hawkish stance is predicted to cause the BTC price to retest the support around 92 thousand dollars.