Gold prices are on a roll, and Bitcoin is holding steady near its February highs on Tuesday as investors play it cool, waiting for the Federal Reserve’s next big move. Geopolitical and trade risks are making things interesting too—it's like a financial rollercoaster, but with a much more exciting twist!
The Federal Open Market Committee (FOMC) is expected to keep interest rates steady at 4.25% to 4.50% when they wrap up their two-day meeting Wednesday afternoon, U.S. time. But what everyone’s really waiting for is Fed Chair Jerome Powell’s speech afterward. Traders are eager to see if Powell adjusts his tone after the latest signs of stubborn inflation and weakening consumer demand.
Before the decision drops, spot gold was up by 0.7%, trading at $3,357 per ounce—shiny, safe-haven appeal to the rescue. Meanwhile, Bitcoin was lingering around $97,500, staying put near the upper end of its recent trading range.
Bitcoin Holds Firm Amid Market Uncertainty
U.S. gold futures were also on the rise, gaining 1.3%, thanks to Chinese investors getting back into gold and central banks looking to pull back from U.S. assets, especially the dollar. Looks like the yellow metal is getting some serious love!
On the geopolitical front, things took a spicy turn. A ballistic missile fired by Houthi forces in Yemen landed near Tel Aviv’s Ben Gurion Airport on Saturday, injuring eight and causing a brief halt to air traffic. Israel wasn’t having any of it and retaliated with airstrikes on Houthi-controlled infrastructure, including Sanaa’s airport, a cement factory, and power plants, leaving at least three dead and dozens injured. The Houthis have promised more payback. Buckle up!
In the U.S., President Trump’s recent trade policy announcements have caused some ripples, especially with proposed levies on foreign-produced pharmaceuticals and media. This has sparked fears of retaliation and more chaos in global trade.
Global Trade Risks and Market Sentiment
On the bright side, Asian stocks are rising, and the dollar’s firming up after a spark of optimism from renewed U.S.-China trade talks. But let’s not forget about Bitcoin, it’s still holding its ground. The dominant cryptocurrency is roughly 10% below its all-time high of $108,786, which it reached back in January.
Now, everyone’s waiting for the Fed’s statement and Powell’s press conference for a hint about the future. Will the Fed ease policy later this year, or will inflation and global tensions keep the central bank on the sidelines for longer?
What’s Next for Bitcoin?
“If the Fed surprises with some dovish tones tomorrow and signals possible rate cuts in June, Bitcoin could easily shoot back to the $100,000 mark—it’s a major liquidity magnet,” said Nic Puckrin, founder of The Coin Bureau.
Keep those eyes peeled, folks!
HODL Team
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