• Bitcoin rose above $104K after Powell stayed silent on the economic outlook.
  • Traders are divided on rate cut chances despite a strong probability of no change in June.
  • Fed may delay cuts unless Trump’s proposed tariffs are rolled back, says Goolsbee.

Bitcoin increased slightly on Saturday after the U.S. Federal Reserve Chair Jerome Powell made a speech but remained silent about the economic direction of the country. BTC recovered from a low of $103,700 and remained above $104,000, with traders now waiting to see a surge towards $105,000.

Trump, Tariffs, and Rate Cuts

This was Powell’s initial public address since he met with President Donald Trump. While the Fed indicated that they didn’t talk about interest rates, the White House indicated that Trump encouraged Powell to lower the rates, terming the current policy as a “mistake”.

The market currently anticipates no rate moves at the June 17–18 Fed meeting with a 95.3% probability that rates remain at 4.25% – 4.5% based on CME data. Yet, most traders still think the Fed might reduce rates three times this year, perhaps in September, October, and December.

Meanwhile, prediction website Polymarket indicates that 28% of traders think there won’t be any cuts whatsoever in 2025.

Chicago Fed President Austan Goolsbee said the rate cuts will only occur if the tariffs proposed by Trump are reversed. Until such time, the Fed will wait and observe how events unfold.

What’s Next?

Powell’s silence left markets in the dark, but Bitcoin reacted favorably. As the June Fed meeting approaches, both crypto investors and mainstream investors will be observing for any policy modifications that would rock the markets.

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