Bitcoin Soars to $103,997 as Powell Speaks: A Crypto Turning Point

Bitcoin Surges to $103,997 Amidst Powell's Speech: A Potential Turning Point for Cryptocurrency Markets

Bitcoin, the world's largest cryptocurrency, touched a new high of $103,997 during Federal Reserve Chair Jerome Powell's speech on Wednesday. This significant milestone comes amidst the Fed's first policy decision of 2025, where it maintained interest rates at their current range of 4.25% to 4.5%.

The crypto market remained relatively stable following the Fed's announcement, with Bitcoin declining by 1% but maintaining levels above $100,000. The digital asset had briefly dipped below $100,000 earlier in the week after China's DeepSeek AI launch erased $1 trillion in global market value.

The Federal Reserve noted solid economic growth and stable low unemployment levels, suggesting no immediate need for rate cuts. However, market expectations for monetary easing remain active, with the CME FedWatch tool indicating a 46.5% probability of a 25-basis-point rate cut in June and a 43.5% chance in July.

Powell indicated that future rate adjustments will be contingent on incoming data, labor market trends, and inflation developments. The central bank removed previous language acknowledging progress on inflation from its statement, signaling a cautious approach to policy adjustments.

The meeting marks the first Federal Open Market Committee gathering under Donald Trump's second term, with the president advocating for lower borrowing costs. Trump's administration's proposed 25% tariffs on Mexico and Canada, along with a temporarily blocked federal spending freeze, complicate the economic outlook.

Market expectations for monetary easing remain active, with the CME FedWatch tool indicating a 46.5% probability of a 25-basis-point rate cut in June and a 43.5% chance in July. Markets are pricing in less than a 40% probability of additional cuts, suggesting expectations for at most two rate cuts in 2025.