An explosive combo for Bitcoin can occur this week

A series of geopolitical and macroeconomic events combine this week, something that could generate high volatility both in Bitcoin (BTC) and in financial markets in general.

This Wednesday, the Federal Reserve (FED), a US Central Bank, will announce how interest rates follow. While these are expected to remain unchanged in the range of 4.25% to 4.5%, the eyes focus on the posterior discourse that Jerome Powell, the president of the agency, will give.

When Powell offers an optimistic look for the economy, stock markets and cryptocurrencies tend to react with consolidation or upward. Otherwise, they usually respond down, as cryptootics reported.

The official has reiterated in the first trimester his projection of making two rate cuts this year, which would increase the liquidity available in the economy. However, on different occasions, he pointed out that he had not trouble in carrying out this policy, since the economy remained “strong in general” with a “solid” labor market.

The Fed also carries a position to “wait and see” for the decision, while evaluating the impact of the tariff measures of US President Donald Trump. While the president paused the imports to the imports he had put, relief to the markets, keeps those placed for China, which unleashes uncertainty in the economy.

But, This week is key in this “commercial war”since senior US officials and their Chinese counterparts will meet in Switzerland for the weekend to have discussions about it. The encounter increases the hopes of a possible de -escalation in the commercial war.

Representatives of the Trump government have already met, in addition, with officials from various countries for commercial negotiations, which has dismissed fears that measures do not loosen more inflation and a recession.

The United States Secretary of the Treasury, Scott Besent, has said that expects to give ads before the end of the week of the first commercial agreements And he foresees that at least 80% of the rest will occur before the end of 2025. Therefore, there is possible that there is high volatility in the markets, including Bitcoin, around his communications in this regard.

Despite this situation, Trump has repeatedly stated that he sees Interest Rat cuts as soon as possible to avoid a recession. Therefore, the markets also focus on whether the Fed maintains its vision of carrying out this measure this year.

Tariff and fees ads are key to Bitcoin

Inflation in the United States has fallen for the second consecutive month to 2.4% per year, according to the consumer price index published in April. If this trend is followed, it would approach the objective of the 2% that the Fed intends, although Trump’s tariff policies generate expectations of rising an increase, which can delay the reduction of rates.

According to the analyst Juan Rodríguez, The markets will be attentive to whether Powell projects an increase in inflation, whether temporary or permanent that causes a recession. This last option would be potentially bassist for Bitcoin, he warns.

Rodríguez also points out that, in the short term, it is key that there are positive advances of commercial negotiations so that markets continue to rise. «Before agreements, the price of Bitcoin will go looking for historical maximums; Before no agreements, he will go back again, ”he says.

Meanwhile, Bitcoin quote about USD 98,000, near the maximum in two months he played last week. This positions the currency 11% below its historical maximum of USD 109,300 registered three months ago.