According to Dan Held on Twitter, while the US government labels Bitcoin as a Ponzi scheme, it is simultaneously managing a national debt exceeding $36 trillion (source: @danheld, May 18, 2025). For crypto traders, this highlights the underlying macroeconomic instability in traditional finance, underscoring Bitcoin’s appeal as a decentralized hedge. This contrast could drive increased institutional and retail interest in Bitcoin and other cryptocurrencies, as investors seek alternatives to fiat currency exposure and inflation risks. Monitoring government debt levels and regulatory rhetoric remains critical for anticipating crypto market sentiment and potential price volatility.

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 Mihir (@RhythmicAnalyst), the recent drop in Bitcoin's price is not due to tariffs, as some influencers have suggested. Instead, Mihir highlights a technical pattern shared previously and identifies fundamental risks such as inflation and rising debt as potential influences on the market. These factors are crucial for traders considering the future price movements of Bitcoin.