Today, the First FED Interest Decision of 2025 is Expected in Bitcoin! What Time Will It Be Announced? Here are the Expectations and Everything You Need to Know!

In recent days, Bitcoin (BTC) and the cryptocurrency market have been affected by volatility, and today all eyes are on the FED's interest rate decision for January.

As known, the FED made its first interest rate cut in September and made an aggressive start to the rate cut cycle with a 50 basis point cut decision. The FED also cut interest rates by 25 basis points in November and December.

After these interest rate cuts, dollar, gold, stock and cryptocurrency investors continue to closely follow the first interest rate decision of 2025, which is the January decision, while the questions of whether the FED will continue its interest rate cuts and how much it will cut remain important for investors.

When Will the January FED Interest Rate Decision Be Announced?

The FED will announce its interest rate decision for January on January 29, 2025 at 22:00 GMT.

After the decision, FED Chairman Jerome Powell will make verbal statements at 22:30.

Where Are Expectations Focused?

The general expectation for the eagerly awaited Fed interest rate decision in global markets is that the Fed will keep its policy rate steady in January. According to Fed Watch, the probability of interest rates remaining steady in January is priced at 99.5%.

At this point, it is widely believed that the Fed will keep interest rates steady this month, while it is predicted to cut rates by 25 basis points in June.

Analysts indicated that it is expected that the Fed may make 3 interest rate cuts within this year in the pricing of the money markets, and it is expected that the policy statement and Powell's verbal guidance will provide clues for the future monetary policy.

In addition, analysts added that despite the statements by Fed officials indicating that the fight against inflation should continue for a long time, expectations of interest rate cuts in the markets have gained strength throughout the year.

LHMeyer analysts believe that the labor market seems to be stabilizing, but they argued that this does not mean that the Fed's monetary policy stance does not have a negative impact on the economy.

Analysts expect the policy interest rate to remain above 4% until mid-2025 and still be more restrictive. We also predict that customs tariffs will exert upward pressure on prices and contribute 2.5% to inflation in 2025, but we expect this to have only a slight impact on preventing the Fed from cutting interest rates.

Crédit Mutuel Asset Management senior market strategist François Rimeu said that the markets are likely to react positively to the Fed's interest rate decision in a moderate manner.

Danske Bank analyst Kirstine Kundby-Nielsen said, “This week, the focus of the markets is likely to remain on developments from the Trump administration, overshadowing the FED and European Central Bank meetings, which are not expected to bring any major surprises.”