According to The Kobeissi Letter, the U.S. Federal Reserve decided to leave interest rates unchanged for the third consecutive meeting on May 7, 2025, signaling ongoing caution amid persistent inflation described as 'somewhat elevated.' The Fed also highlighted increased uncertainty about the economic outlook and noted that risks of both higher unemployment and inflation have risen. These factors often drive volatility in cryptocurrency markets, as traders reassess risk and seek alternative assets during periods of monetary policy uncertainty. The Fed's stance is likely to influence Bitcoin price swings and overall crypto market sentiment as investors react to signals on future rate moves. (Source: The Kobeissi Letter, May 7, 2025)

According to @Zac_Pundi, Polymarket traders currently assign a 98.2% probability to the Federal Reserve maintaining current interest rates at the May 2025 FOMC meeting, with only 1.6% expecting a 25 basis point increase (source: @Zac_Pundi on Twitter, May 7, 2025). For crypto traders, this strong consensus suggests that major volatility tied to U.S. monetary policy is unlikely in the near term. Stable rates are generally interpreted as neutral-to-positive for risk assets like Bitcoin and Ethereum, as they keep liquidity conditions unchanged. Market participants should monitor any unexpected FOMC commentary, as even small surprises can trigger rapid crypto price movements.

According to Material Indicators (@MI_Algos), significant shifts are occurring in the Bitcoin order book liquidity as traders prepare for the upcoming FOMC FED Rate Cut Decision Meeting this Wednesday. Despite consensus that no rate cut will be announced, market participants are adjusting positions in anticipation of comments from Fed Chair Jerome Powell. Historically, Powell’s statements have triggered volatility in both traditional and crypto markets, with Bitcoin often reacting sharply to dovish or hawkish tones. Traders should closely monitor support and resistance levels in BTC order books, as sudden liquidity movements could signal substantial price swings following the FOMC announcement. (Source: @MI_Algos, x.com/i/broadcasts/1…)

According to The Kobeissi Letter, traders are closely watching Federal Reserve Chair Jerome Powell this week amid renewed pressure from former President Trump to cut interest rates (source: @KobeissiLetter, May 4, 2025). The Kobeissi Letter notes that their trading portfolio has returned over 370% since 2020. Market participants are anticipating volatility in both traditional and crypto markets as the Fed's rate decision approaches, with rate-sensitive assets like Bitcoin and Ethereum likely to see increased trading activity depending on Powell's stance.

According to The Kobeissi Letter, traders are closely monitoring Fed Chair Powell's upcoming policy statements this week after recent public pressure from former President Trump to cut interest rates (source: @KobeissiLetter, May 4, 2025). The Kobeissi Letter emphasizes that monetary policy decisions will likely impact crypto market volatility and liquidity, urging traders to factor potential rate movements into their short-term positions and risk management strategies. Their historical performance shows over +370% returns on calls since 2020, highlighting the significance of informed, data-driven trading in periods of macroeconomic uncertainty (source: @KobeissiLetter, May 4, 2025).

According to @EmberCN, trader @qwatio made a significant profit by trading BTC around the Fed rate decision announcement. Starting with $690,000 USDC, @qwatio executed a series of trades, including shorting 326 BTC at $84,566, and managed to turn the initial amount into $1.826 million USDC, achieving a 164% profit within three hours.