Fed Maintains Rates: Crypto Markets React to FedWatch Probabilities – Coincu

FedWatch data suggests a 95.3% chance of the U.S. Federal Reserve holding interest rates in May, causing notable crypto market reactions on May 2, 2025.

The market shows sensitivity to interest rate expectations, with Bitcoin surpassing $97,000. Investors are keenly observing potential policy shifts.

Fed’s Rate Stability Spurs Bitcoin Surge Over $97,000

CME’s FedWatch indicates a 95.3% probability that the Fed will maintain interest rates, while only 4.7% expect a 25 basis point cut. This closely follows recent macroeconomic signals and aligns with market expectations.

Cryptocurrency markets often react to Fed policy changes. In anticipation, Bitcoin surged past $97,000 on May 1, echoing similar movements seen during past interest rate consultations. Ethereum also reported gains, indicating increased investor confidence.

“Bitcoin is often seen as a barometer for institution-driven capital flows.”

Although no formal statements have been issued by Fed leadership, market analysts suggest that a static rate is favorable for risk assets like Bitcoin and Ethereum. The absence of official comments underscores the speculative environment in crypto markets.

Bitcoin Nears $97,000 Amidst Macroeconomic Projections

Did you know? The Fed’s rate decisions historically impact crypto volatility. During 2020, interest pauses coincided with a significant Bitcoin rally from $10,000 to $20,000, showcasing the powerful influence of U.S. monetary policy on digital assets.

Bitcoin currently trades at $96,930.41, per CoinMarketCap, with a market cap of 1.92 trillion and a 24-hour volume increase of 14.96%. BTC’s price advanced by 2.18% over 24 hours, signaling investor optimism during macroeconomic policy reviews.

Insights from the Coincu team indicate that Bitcoin’s recent price behavior aligns with cyclical macro reactions. Fed meetings often pivot crypto trends, emphasizing the need for regulatory transparency and balanced financial strategies. Historically volatile, such macroeconomic news continues to shape crypto landscapes and market sentiment.