Surprising Fed decision sends markets surging

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Surprising Fed decision sends markets surging

Bitcoin is gaining ground as the U.S. Federal Reserve is anticipated to keep the interest rates unchanged.

As per on-chain analytical firm Nansen, the Fed might leave its benchmark interest rate unchanged, and data from the CME shows markets have priced in a 99% probability of a pause.

This probability comes amid ongoing concerns about high inflation and rising costs due to trade tariffs.

US Federal Reserve Chairman Jerome Powell is set to announce the outcome of the highly anticipated two-day policy meeting on Wednesday, May 7, 2:30 PM ET.

During its last meeting in March 2025, the Fed kept the key benchmark lending rate unchanged at 4.25% to 4.50%, while signaling the possibility of two 25-basis-point cuts before the end of the year.

Global investors are closely watching Powell’s remarks tonight. Most expect the Fed to hold rates steady once again — even as President Donald Trump has publicly urged Powell to lower rates in an effort to prevent a potential economic slowdown.

Markets fully price in a Fed pause — CME data shows 99% probability of no rate change at the May 7, 2025 FOMC meeting.

The world’s largest crypto has been trading at

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, 3.90% higher over the past 24 hours as markets bet on a “hold” decision by the Federal Reserve.

Lower interest rates generally benefit riskier assets like cryptocurrencies, since they make borrowing cheaper and encourage more investment. As recession fears cool and risk appetite returns, Bitcoin is showing signs of breaking away from traditional markets — at least for now.

According to 

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, there is no net downside effect for cryptocurrencies as a result of today’s announcement, but rather the opposite, which strengthens Bitcoin’s recent momentum.

While stocks remain mixed — with the S&P 500 slipping below its 200-day moving average, often seen as a bearish signal — Bitcoin’s technical indicators are turning bullish. Short-term moving averages are rising above long-term ones, which many traders see as a positive trend.

Meanwhile, altcoins are lagging. They’ve yet to pick a clear direction and are waiting on stronger macro signals, such as the outcome of U.S. trade negotiations or potential new tax breaks for businesses.

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