Bitcoin Traders’ Reactions to Fed’s Interest Rate Decision

Bitcoin traders appeared to have a positive reaction to the Federal Reserve’s recent interest rate decision, according to deVere Group CEO Nigel Green.

Despite the Fed not lowering rates—as some crypto traders may have anticipated—Fed Chair Jerome Powell’s comments gave markets a glimmer of hope, predicting potential rate cuts later in the year.

However, Green emphasizes that President Donald Trump’s tariffs on imported goods could have lasting effects, undermining the Fed’s optimistic outlook. He believes that protectionist trade policies may push companies to manufacture domestically, potentially leading to higher labor costs and wage growth.

Green expressed skepticism about the idea that inflationary pressures will ease quickly under these conditions. He stated, “Markets seem to have embraced Powell’s message, as stocks surged following his reassurances about the short-lived inflationary effects of tariffs.”

Currently, investors are buoyed by Powell’s optimistic stance. At the time of writing, Bitcoin is trading at $85,208, marking a 1.8% increase from the previous day. Earlier, Bitcoin had temporarily surpassed $86,000, although it remains 11% below its price from a month ago.

Meanwhile, Bitcoin and Ethereum ETF inflows are slowing, although this is not necessarily negative, according to BRN analyst Valentin Fournier. He noted that overall trading activity remains high, despite Bitcoin ETFs seeing $11.8 million in inflows and Ethereum ETFs experiencing $11.7 million in outflows.

Fournier maintained a neutral rating on Bitcoin and Ethereum; he highlighted that Bitcoin is doing well to hold its price while Ethereum is working to regain momentum. In contrast, he rated Solana as “overweight” following significant ETF news.

Later today, the Volatility Shares Solana ETF tracking Solana futures contracts will commence trading under the SOLZ ticker, along with the leveraged Volatility Shares 2x Solana ETF, which will trade as SOLT, providing potential for amplified returns—or losses—on Nasdaq. Although Solana has slightly retreated from a high of $136.09, it is still trading 2.5% higher than the previous day.