Dogecoin, Cardano’s ADA Lead Market Gains as Bitcoin Traders Eye Next Fed Meeting
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The market saw Dogecoin and Cardano's ADA taking the lead in gains amidst Bitcoin traders keeping a close watch on the upcoming Fed meeting. Expectations are high for a 100 basis-point cut in 2025, with the easing likely to kick off post-July.
Bitcoin nearly hit $100,000 with market optimism fueled by signals from the Federal Reserve and Donald Trump's mention of a potential trade deal. Major cryptocurrencies like Dogecoin and ADA witnessed substantial growth, propelling the CoinDesk 20 index up by 2.2%. However, uncertainty prevailed after the Federal Reserve chose to maintain interest rates, affecting risk assets such as cryptocurrencies.
In a recent social media update, Trump hinted at a significant trade agreement announcement at an upcoming press conference at 10 a.m. ET with a respected country—the U.K.—reportedly involved. This revelation could signal the beginning of multiple similar deals, potentially reducing market uncertainties stemming from tariffs.
While the Federal Reserve's decision to keep interest rates steady wasn't unexpected, it left markets divided on future rate cuts timing. Traders are eyeing a potential July cut towards the 4.00%-4.25% range with expectations of a total 100 basis-point ease by year-end.
Dogecoin, Cardano’s ADA Lead Market Gains as Bitcoin Traders Eye Next Fed Meeting
Analysts say they expect a 100 basis-point cut in 2025, with easing likely to start after July.
- The bitcoin price approached the $100,000 mark as crypto markets rose, driven by Federal Reserve signals and Donald Trump's hint of a potential trade deal.
- Major cryptocurrencies like dogecoin and Cardano's ADA saw significant gains, while the CoinDesk 20 index rose by 2.2%.
- The Federal Reserve's decision to hold interest rates steady left markets uncertain about future cuts, impacting risk assets including cryptocurrencies.
Analysts like Semir Gabeljic from Pythagoras Investments highlighted Bitcoin's resurgence towards $100,000 amid deliberations around future rate cuts following pressure on Fed decisions. Concerns were also raised about the risk of stagflation due to rising inflation coupled with economic stagnation and increased unemployment—all detrimental to a robust economy.
Despite anticipating rate cuts throughout the year, there are warnings that acting too late might exacerbate economic challenges further. Amid this uncertain macroeconomic environment, Bitcoin is proving resilient as evidenced by significant inflows into U.S. spot bitcoin ETFs like BlackRock’s IBIT attracting $4.3 billion over recent weeks.
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The CME FedWatch Tool shows probabilities for a July cut to the 4.00%-4.25% range at 55%, even as traders priced in a cumulative 100 basis points of easing by year-end.
“Bitcoin is inching back up to $100k with the steady Fed rate decision and the topic of future rate cuts having more consideration by traders,” said Semir Gabeljic, head of Pythagoras Investments. “Based on the current administration’s pressure on the Fed chair, anything is a possibility—uncertainty is the only certainty.”
Other observers warned that policymakers could be walking into a period of stagflation, which occurs when high inflation, stagnant economic growth and rising unemployment occur simultaneously — considered highly detrimental for a healthy economy.
“With businesses largely passing rising tariff costs onto consumers ... inflation is expected to reaccelerate over the next six months, while labor market indicators point to a deteriorating employment outlook,” Selby said.
Selby added that while CF Benchmarks still anticipates “around 100bps of rate cuts by year-end,” the Fed could err by acting too late, risking further economic pain.
“In this volatile macro backdrop, bitcoin has clearly emerged as a key beneficiary,” Selby noted, citing record inflows into U.S. spot bitcoin ETFs, including BlackRock’s IBIT, which has seen $4.3 billion in inflows over the past month.
