According to Mihir (@RhythmicAnalyst) on Twitter, the Fed's preferred inflation indicator showed no reduction for May 2025, signaling persistent inflationary pressure (source: https://twitter.com/RhythmicAnalyst/status/1928434172281991390). This data point is crucial for traders as it suggests the Federal Reserve may delay interest rate cuts, increasing uncertainty and potential volatility across both traditional and crypto markets. Persistent inflation often leads to tighter monetary policy, which can weigh on risk assets like Bitcoin and Ethereum, prompting traders to monitor policy updates and inflation trends closely.

According to Crypto Rover, Federal Reserve Chair Jerome Powell and former President Donald Trump held discussions focused on current economic developments and potential interest rate cuts (source: Crypto Rover, Twitter, May 29, 2025). This high-level conversation signals possible shifts in US monetary policy, which historically influence both stock and cryptocurrency markets. Traders should monitor upcoming Fed statements as interest rate cuts can boost liquidity and drive capital flows into risk assets like Bitcoin and Ethereum. Crypto market participants are advised to track policy changes and macroeconomic signals for optimal trading strategies.

According to Crypto Rover, China's state banks will reduce deposit interest rates on Tuesday as part of a significant economic stimulus effort (Source: @rovercrc, Twitter, May 19, 2025). Lowering deposit rates is aimed at encouraging spending and investment, which may increase liquidity in financial markets. Historically, such moves in China have led to increased capital flows into alternative assets, including cryptocurrencies. Traders should monitor potential impacts on Bitcoin and other digital assets, as similar past policy shifts have correlated with crypto price surges. Additionally, speculation about the US taking similar actions could further drive global crypto market volatility.

According to The Kobeissi Letter, President Trump publicly stated that the consensus among most is for the Federal Reserve to cut interest rates, criticizing Fed Chair Jerome Powell as 'Too Late Powell' (source: @KobeissiLetter, May 17, 2025). This renewed push for rate cuts signals potential increased liquidity in financial markets, which historically correlates with bullish momentum in the cryptocurrency sector, particularly for major assets like Bitcoin and Ethereum. Traders should monitor Fed policy statements closely, as any confirmation of rate cuts could drive significant price action and volatility in crypto markets.

According to The Kobeissi Letter, global central banks have executed 10 rate cuts and 3 hikes in 2025, following a substantial trend of 164 cuts and 32 hikes in 2024. This shift indicates a strategic adjustment compared to the 162 cuts and 6 hikes during the 2020 pandemic. The U.S. has paused rate cuts, while European central banks continue to adjust policies, which could influence trading strategies in forex and bond markets.