Crypto Soars as BTC Nears $100k while US Fed Keeps Interest Rates Steady

Bitcoin has risen to US$98,680, approaching the US$100k mark amid the Federal Reserve’s decision to hold interest rates steady.Fed Chair Jerome Powell warned that Trump’s tariffs would increase prices for US consumers, weaken economic growth, and potentially lead to higher unemployment.The Federal Reserve last cut rates in December 2024, with Powell indicating tariffs make future rate reductions unlikely in the near term.According to analyst Jim Bianco, the probability of June rate cuts has plummeted from 78% to 20% due to post-Liberation Day data.Most cryptocurrencies got off to a good start to the week following the US Federal Reserve’s decision to hold interest rates steady. Bitcoin (BTC) is up 4 per cent week-on-week and 2 per cent on the daily chart and currently trades at US$98,680 (AU$152,903), eyeing the US$100k (AU$154.8k) barrier.Policymakers at the Fed have sent out warnings over Trump’s erratic tariffs, which have dominated the news cycle for weeks and kept markets on edge. Fed Chair Jerome Powell warned that the tariffs would lead to higher prices for US consumers and weaken US economic growth.Related: Trump‐linked Crypto Windfall Triggers Democratic Mutiny, Puts GENIUS Act on the BrinkCan We Still Expect ‘Higher for Longer’?Trump’s actions also have increased “the risks of higher unemployment and higher inflation”, as per the Fed. The Fed last cut rates in December 2024 – Powell said tariffs make it unlikely that rates would come down soon: If the large increases in tariffs that have been announced are sustained, they are likely to generate a rise in inflation, a slowdown in economic growth, and an increase in unemployment. Fed Chair Jerome Powel Back in Australia, the Reserve Bank of Australia (RBA) is making its decision on interest rates on May 20. Most analysts expect a cut, which would see the cash rate fall from 4.10 per cent to 3.85 per cent.Expert Issues Dire Warning About June MeetingSo, what about the rest of 2025? According to Jim Bianco, well-known commentator and macro researcher at Bianco Research, the likelihood of a US June cut has plunged to just 20 per cent, down from 78 per cent “right before the release of the April ISM (the first post-Liberation Day monthly economic release)”.Bianco added that in one short week, probability for June cuts has all but evaporated: So, in the space of a week, the combination of post-Liberation Day data showing an economy that is fine, and the Fed presser, the June rate cut effectively disappeared from the market pricing. Jim Bianco Probability of Fed Rate cuts June 18, source: Bloomberg/Bianco ResearchRead also: Mark Cuban Calls Out Trump’s Crypto Gambit: ‘Memecoins Are a Bad Example’The post Crypto Soars as BTC Nears $100k while US Fed Keeps Interest Rates Steady appeared first on Crypto News Australia.