Bitcoin fell under $95,000 on Monday, shedding more than 3% from last week’s high of $97K. The drop came after former President Donald Trump revived his tough trade talk, announcing plans to slap a 100% tariff on foreign movies via Truth Social . While it may sound niche, markets took it seriously — viewing it as a possible signal of broader protectionist measures ahead.
This fresh uncertainty landed just as traders were bracing for the Federal Reserve’s interest-rate decision on Wednesday, compounding market nerves. Bitcoin now hovers around $94K, but is sentiment turning?
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Eyes on the Fed
The Fed is widely expected to hold rates steady for a third straight meeting, keeping its target range at 4.25% to 4.5%. According to the CME FedWatch Tool , there’s a 95.5% chance of no change.
But what investors really care about is the tone. Will Fed Chair Jerome Powell focus on inflation risks from tariffs? Or highlight slowing growth as the bigger threat?
If Powell leans toward economic slowdown as the bigger risk, we could see a rally in risk assets. A dovish tone could open the door to future rate cuts — something markets would welcome.
Then again, Powell might stay noncommittal, mirroring Trump’s trade war playbook to keep the Fed’s options open.
Will the Projections Shift?
Also coming Wednesday (tomorrow): the Fed’s quarterly economic projections. Back in December, officials expected two rate cuts this year. But with inflation still sticky and tariffs back in play, that outlook could change.
It’s a tightrope walk. Traders will be watching closely to see if the Fed prioritizes price stability — or leans toward stimulating a potentially cooling economy.
Crypto Still Attracting Big Players
Despite the volatility, institutions aren’t backing off. BlackRock’s iShares Bitcoin Trust ETF has scooped up 41,452 BTC (about $3.9 billion) in the past two weeks, bringing total holdings to over 614,000 BTC — worth more than $58 billion.
So, is this dip just noise for long-term believers?
Market Movers to Watch
Florida’s Bitcoin Reserve Bills Postponed: Two strategic state-level bills were put on indefinite hold, adding to crypto’s legislative limbo in the U.S.
Stocks Waver: U.S. equities opened the week cautiously. Tech slipped slightly as traders wait for the Fed.
Altcoins Trail Bitcoin: Ethereum and Solana edged down but still hold recent gains.
