Federal Reserve minutes from the April meeting revealed that most policymakers believe further policy tightening may be necessary if inflation remains persistently above the 2% target, directly undermining the rate-cut narrative that Bitcoin markets had been pricing in throughout 2025. Rather than signalling relief through lower borrowing costs, the Fed's language introduced the possibility of additional hikes — a scenario historically unfavourable for risk assets like Bitcoin. The minutes shift the macro backdrop from one of anticipated monetary easing to potential tightening, forcing traders to reprice exposure. Bitcoin had been partly buoyed by expectations that the Fed would cut rates, reducing the appeal of dollar-denominated safe assets and boosting speculative positions in crypto markets.
— Sponsored —
Trade smarter on BYDFI
Get a bonus on your first deposit — from $50 at $100, up to $2,000 at $20k. 200x leverage, 600+ perpetuals, deep liquidity.