According to Crypto Rover, traders should prepare for increased volatility in the cryptocurrency markets this week due to significant US Federal Reserve events at the start of the week (source: Crypto Rover on Twitter, May 19, 2025). Fed policy updates often lead to sharp price movements in Bitcoin, Ethereum, and altcoins as investors react to interest rate decisions and economic outlook announcements. Active traders are advised to monitor the Fed schedule closely and adjust positions accordingly, as historical data shows heightened trading volumes and rapid price swings during major Fed events.

According to AltcoinGordon, Donald Trump publicly criticized Federal Reserve Chair Jerome Powell for delayed interest rate decisions, labeling him 'too late Powell.' This criticism highlights ongoing uncertainty in US monetary policy, which historically increases Bitcoin and crypto market volatility as traders hedge against fiat instability (source: AltcoinGordon on Twitter, May 18, 2025). Active traders should monitor Fed policy statements, as further political pressure could lead to sharper price swings in leading cryptocurrencies.

According to @KobeissiLetter, a market downgrade occurred just before futures closed for the weekend, leading to an immediate gap down in stock prices and a spike in bond yields. This action is not supportive of efforts to achieve lower US interest rates, a key policy aim for Trump. For crypto traders, such volatility in traditional markets often increases short-term demand for digital assets as alternative investments, and could impact Bitcoin and Ethereum price action in the coming week (source: @KobeissiLetter).

According to The Kobeissi Letter, the US government's deficit to GDP ratio was significantly impacted by interest payments last year. The primary deficit was 3.3%, but interest payments added 3.1 percentage points, bringing the total deficit to 6.4%. This situation highlights the government's need for lower interest rates, which could affect trading strategies involving US debt securities and the USD. Investors should monitor interest rate policies closely, as they can influence bond yields and currency valuations.