How Will FOMC Day Affect Bitcoin And Altcoins
By: bitcoin ethereum news|2025/05/07 15:45:01
0
Share
The Federal Open Market Committee (FOMC) meeting is underway, with the U.S. Federal Reserve set to announce its next monetary policy decision at 2 PM ET on Wednesday. According to data from CME FedWatch, traders expect the central bank to keep its federal funds target rate unchanged at 425 to 450 basis points. However, Fed Chair Jerome Powell’s press conference could trigger significant volatility in the markets, potentially having a major impact on crypto investments. Given the weak first-quarter U.S. GDP report, there’s a strong likelihood that Powell will adopt a more dovish stance, offering potential relief for the crypto market. Smart-money investors are already buying the dip, pushing Bitcoin’s price back to $97,000. Sidelined investors may have one last opportunity to stack up on the best cryptos to buy before the start of an explosive rally. Wednesday’s FOMC Could Trigger Significant Volatility In Crypto Prices There is a growing consensus that Fed Chair Jerome powell’s post-FOMC speech could be bullish for financial markets. The US Q1 GDP contracted by 0.3%, significantly worse than the market expectations of a 0.3% growth. The reading sparked significant recession concerns, considering two consecutive quarters of negative GDP meets the criteria of a technical recession. The odds of a recession in the US economy in 2025 surged over 70% on predictions market like Kalshi and Polymarket. Meanwhile, the economy received good news on the inflation front, with the Fed’s preferred indicator, core PCE, coming at 2.6% in line with market expectations. Therefore, it won’t be surprising if Powell adopts a dovish stance to give some much-needed respite to jittery investors, potentially indicating aggressive rate cuts this year or hinting at the start of the Fed’s Quantitative Easing. As such, the CME FedWatch is indicating the possibility of three cuts this year. Moreover, the central bank continues to provide liquidity to markets through several non-QE measures. Just yesterday, the Fed purchased $20 billion worth of 3-year bonds, the largest single-day purchase in 2021. It is not without any reason that the Bitcoin price successfully defended the $93,500 support level ahead of the FOMC, now bouncing to $97,000 at press time with climbing open interest. Best Cryptos To Buy Now Sidelined investors should quickly increasing their exposure to Bitcoin. There is a rapidly growing consensus that the Bitcoin price could climb to $150k in the second quarter itself. Several prominent analysts are now also hinting at the possibility of $210k this year. Investors should also buy XRP, considering it is one of the strongest altcoins on the market. In particular, a decisive close above the $2.26, which could come quickly after Wednesday’s FOMC, could trigger a rally to $3 in the short-term. Among the meme coins, Popcat has emerged as an attractive investment, recording the highest investments from smart money wallets in the past 24 hours, data from Stalkchain reveals. Investors should also keep an eye out on Fartcoin, owing to its relative strength. In particular, a daily close above $1.20 would pave the way for a rally to $2. Smart money investors are also hunting for low-cap gems, especially in the AI sector. For instance, Mind of Pepe (MIND) has caught the attention of the whales ahead of its AI agent launch on May 10th. Just last week, a whale swapped 70 ETH for MIND, adding to the list of its six-figure investments. The Mind of Pepe presale has already raised over $8.8 million in short order, which indicates strong community support. However, it is also a small-cap AI coin, still in its presale, which makes it an attractive investment. Prominent analysts and crypto influencers are calling it the next 100x crypto, while others are viewing it as one of the best cryptos to buy now. Visit Mind of Pepe Presale This article has been provided by one of our commercial partners and does not reflect Cryptonomist’s opinion. Please be aware our commercial partners may use affiliate programs to generate revenues through the links on this article. Source: https://en.cryptonomist.ch/2025/05/07/how-will-fomc-day-affect-bitcoin-and-altcoins-crypto-predictions/
You may also like

Reduced to a hacker's ATM yet standing tall, the theft of Venus reflects the awkwardness of DeFi
After experiencing over $100 million in bad debts in at least four incidents, Venus remains the leading player in the lending sector on the BNB Chain, making it a rare "survivor" in the crypto space.

Under geopolitical conflicts, a policy window has opened. Can Hong Kong seize this wave of RWA opportunities?
The RWA wave sweeps the globe: the scale of on-chain real assets surged fourfold in one year, exceeding 25 billion USD. Hong Kong, backed by the mainland's "going out" policy window, is accelerating the tokenization process of physical assets from entertainment to real estate.

For Web3, this time Cai Wensheng is determined to get his hands dirty
This industry has experienced too many undignified endings; a bull market and a recovery cannot solve the problem. In the end, it will rely on projects that truly succeed and ecosystems that are genuinely established to win a dignified victory for the crypto OGs.

Ethereum Foundation Sets Up a "Dead Man's Switch," Will the Community Buy It?
The Ethereum Foundation's Manifesto Has Torn the Community Apart: Punk Idealism or Disconnect from Reality?

ConversationArthur Hayes: AI Will Spark Financial Crisis, Wait for Central Bank Money Printing Before Buying Bitcoin
「War Means Printing Money, and Printing Money is Good for Bitcoin」

From Power to Chip: How the Average Person Can Participate in the Wealth Opportunities of the AI Era
Everyone is talking about AI applications, but the real money-maker is the person selling the "shovel."

Venus Exploit Post-Mortem: How to Profit in a Flash Loan Window?
Due to Venus's own vulnerability, someone was able to borrow real money using "fake money."

Oil Price Surges, Inflation Rekindled: Will the Fed's Next Move Be a Rate Hike?
Affected by geopolitical conflicts and surging oil prices, renewed inflation concerns have arisen. Currently, the derivatives market is pricing in a 25% probability of a rate hike this year.

The Rise of Crypto Passive Income: How Auto Earn Unlocks the Hidden Value of Idle Crypto
Discover how Auto Earn helps investors turn idle crypto into crypto passive income. Learn why Auto Earn is becoming a popular strategy in the evolving Web3 economy.

Tron Industry Weekly Report: Risk aversion intensifies but Strategy increases BTC holdings, detailed explanation of the Agent payment protocol PAN Network based on x402 and ERC-8004
TRON Industry Weekly Report

March 16 Key Market Intel - A Must-See! | Alpha Morning Report
1. Top News: Crypto Market Initiates Morning Rebound, Bitcoin Surges Past $73K, Ethereum Surpasses $2200
2. Token Unlock: $ARB

Google's biggest acquisition ever, why Wiz?
Cloud War, Extremely Costly.

「1011 Insider Whale」 Agent Garrett Jin: After the Houthi blockade, who will run out of steam first?
Vulnerability Assessment of the Seven Kingdoms.

Vitalik Revisits Ethereum Beacon Chain Architecture, Claude's Off-Peak Transaction Limit Doubled, What Are English-Speaking Communities Discussing Today?
In the past 24 hours, what was the most concerning issue for foreigners?

$90 Million Black Hole: War, Power, and the Crypto-Tragedy of the Middle East
$90 Million Burned, Not Stolen, in Apparent On-Chain Political Cleanup Action.

The price difference exceeds 50%, and the pre-market arbitrage market for cryptocurrency stocks will become a new business in the crypto bear market
In a bear market, what to Buidl? Besides having a counter-cyclical mindset, one must also find the "cracks" in existing services.

How to Trade Crude Oil: Market Volatility Creates New Opportunities for Crypto Traders
Oil prices are back in focus as geopolitical tensions and supply shifts reshape global markets. Learn how crude oil trading works and explore a $30,000 trading campaign on WEEX.

OpenClaw and AI Bots: From AI Trading to BTC Liquidations in the Crypto Gold Rush
AI crypto trading bots like OpenClaw and AI trading apps are reshaping digital markets. From BTC liquidations to crypto bubble charts, automated trading is expanding alongside free crypto airdrops, affiliate programs, LALIGA partnerships, and tokenized gold markets.
Reduced to a hacker's ATM yet standing tall, the theft of Venus reflects the awkwardness of DeFi
After experiencing over $100 million in bad debts in at least four incidents, Venus remains the leading player in the lending sector on the BNB Chain, making it a rare "survivor" in the crypto space.
Under geopolitical conflicts, a policy window has opened. Can Hong Kong seize this wave of RWA opportunities?
The RWA wave sweeps the globe: the scale of on-chain real assets surged fourfold in one year, exceeding 25 billion USD. Hong Kong, backed by the mainland's "going out" policy window, is accelerating the tokenization process of physical assets from entertainment to real estate.
For Web3, this time Cai Wensheng is determined to get his hands dirty
This industry has experienced too many undignified endings; a bull market and a recovery cannot solve the problem. In the end, it will rely on projects that truly succeed and ecosystems that are genuinely established to win a dignified victory for the crypto OGs.
Ethereum Foundation Sets Up a "Dead Man's Switch," Will the Community Buy It?
The Ethereum Foundation's Manifesto Has Torn the Community Apart: Punk Idealism or Disconnect from Reality?
ConversationArthur Hayes: AI Will Spark Financial Crisis, Wait for Central Bank Money Printing Before Buying Bitcoin
「War Means Printing Money, and Printing Money is Good for Bitcoin」
From Power to Chip: How the Average Person Can Participate in the Wealth Opportunities of the AI Era
Everyone is talking about AI applications, but the real money-maker is the person selling the "shovel."