Street Talk
- Bitcoin's price slid on Wednesday, while altcoins took a heavier hit.
- Trump took a swipe at Powell, labeling him "dumb," as the Fed is expected to maintain interest rates steady.
- Iran's top leader warned the U.S. will face "unrepairable damage" if it joins the escalating conflict in the Middle East, backing Israel.
Scene Unplugged
Trump's Criticism of Powell Causes Bitcoin to Drop Amid Intensifying Middle East Tensions
The value of Bitcoin plummeted on Wednesday, with U.S. President Donald Trump taking a jab at Federal Reserve Chair Jerome Powell amid heated tensions in the Middle East.
From the Oval Office, Trump branded Powell "dumb," claiming that the U.S. central bank "probably didn't lower [interest rates] today," despite "no inflation" from tariffs.
Bitcoin was recently changing hands around $104,800, losing 0.8% over the past day, crypto data provider CoinGecko revealed. Altcoins suffered a greater blow, with Solana and XRP falling 3.2% to $146 and 3.1% to $2.15 respectively.
The Fed is scheduled to hold interest rates steady for the fourth time consecutively on Wednesday, with almost all Fed futures traders aligning with the president, according to CME FedWatch.
Though Trump has often called on Powell to cut rates, the U.S. central bank has taken a "wait-and-see" stance, monitoring how Trump's fluctuating approach to tariffs could possibly lead to higher prices and slower economic growth. Trump's immigration policy could also complicate controlling inflation, Fed policymakers hypothesized in December.
In addition to the Fed's pending pause, holding its benchmark rate at a target range of 4.25% to 4.5%, the U.S. central bank is set to release a new set of quarterly economic projections. In March, Fed policymakers projected two quarter-percentage-point reductions this year. The Fed's projections will also cover key indicators like inflation and the employment rate.
Marcin Kazmierczak, co-founder and COO of modular blockchain oracle Redstone, told Scene that Powell's post-decision press conference could include linguistic shifts. If Powell highlights "cumulative tightening effects," that would be dovish and a subtle recognition that there's a time lag between policy actions and their economic impact, Kazmierczak explained.
Simultaneously, Iran's Supreme Leader Ayatollah Ali Khamenei cautioned that the U.S. will face "irreversible harm" if the nation enters a developing conflict in the Middle East alongside Israel, reported CNBC.
Khamenei's warning follows Trump's threat on Tuesday that the Iranian supreme leader is an "easy target," while demanding Iran's unconditional surrender.
Revised by James Rubin
Quick Rundown
Current market forecasts for Bitcoin remain optimistic for June 2025, with most experts and technical models anticipating sustained upward growth. Leading analysts predict Bitcoin's price could range from $115,000 to as high as $140,000-$150,000 in bullish scenarios for the coming weeks, with some even more ambitious targets ($200,000) by year-end [2][4][5]. For example, Bitfinex anticipates $115,000 by early July, Tom Lee projects at least $150,000 by the end of 2025, and Changelly’s June outlook suggests a peak near $137,189 with robust support above $105,000 [2][5].
Regarding the Federal Reserve and interest rates: current analyst discussions, such as those mentioned by Tom Lee from Fundstrat, suggest that the market is anticipating a more accommodative Federal Reserve in the near future. This expectation of lower or stable interest rates is viewed as a boost for Bitcoin, which is seen as responding to global liquidity and monetary policy trends. If the Fed signals a pause or a shift toward easing after four consecutive meetings, experts suggest this could further foster capital inflows into risk assets like Bitcoin [2].
In summary, Bitcoin’s price predictions are overwhelmingly positive for the close term, and the market expects that accommodative Fed policy—if confirmed—would bolster these gains [2][5]. There is no particular current consensus on a dramatic shift in interest rates, but rather an expectation that the Fed’s stance will remain favorable to risk assets.
- In the midst of political tensions, Bitcoin's price plummeted, while altcoins like Solana and Ripple experienced a greater dip, according to CoinGecko data.
- The Federal Reserve, under the leadership of Jerome Powell, is expected to maintain interest rates steady, as outlined by CME FedWatch, potentially boosting Bitcoin and other cryptocurrencies.
- Experts have shared optimistic market forecasts for Bitcoin, predicting a sustained upward growth for June 2025, with potential prices ranging from $115,000 to $150,000 or more.
- Iran's Supreme Leader Ayatollah Ali Khamenei has issued a stern warning, suggesting that the U.S. will face unrepairable damage if it becomes involved in a developing conflict in the Middle East, as reported by CNBC.
- The President's immigration policy could complicate controlling inflation, according to Fed policymakers' hypotheses from December, which may affect the Fed's monetary policies and interest rates.
