Bitcoin rises 3% on US interest rate decision day

Source: PortaldoBitcoin Original Title: Bitcoin Today: BTC Rises 3% on US Interest Rate Decision Day Original Link: https://portaldobitcoin.uol.com.br/bitcoin-hoje-btc-sobe-3-em-dia-de-decisao-de-juros-nos-eua/ After a volatile start to the week, Bitcoin recovers this Wednesday (10) and advances 3.1%, trading at US$ 92,886. In reais, the leading cryptocurrency returns to the R$ 500,000 level, quoted at R$ 503,874.

Bitcoin’s gains come on an important day for the financial market, marked by the FOMC meeting this afternoon to decide the new US interest rate. The vast majority of analysts expect the third interest rate cut of the year.

The CME FedWatch tool indicates almost 90% chance that the Fed, the US central bank, will announce a 25 basis point cut this Wednesday.

If confirmed, the move is likely to benefit the cryptocurrency market, as lower interest rates reduce the attractiveness of conservative investments such as government bonds, prompting investors to seek alternatives with higher appreciation potential, such as stocks and cryptocurrencies.

That’s why the crypto market closely follows the Fed’s decisions: a rate cut can increase liquidity, improve risk appetite, and boost the price of Bitcoin and other blockchain-based assets.

On the other hand, the gains registered by cryptocurrencies between yesterday afternoon and night may indicate that traders have already priced in the possible cut, which could limit appreciation after the announcement — in a classic “buy the rumor, sell the news” movement.

“Weakness of the dollar and the prospect of greater liquidity support appetite for cryptoassets, possibly favoring a moderate advance or at least supporting a period of consolidation,” said analyst André Franco from Boost Research.

He also notes that a retreat by cryptocurrencies is not ruled out, “especially if Jerome Powell adopts a more hawkish tone in his speech, which could increase risk aversion and pressure BTC.”

A “hawkish” speech means a tougher stance against inflation, translating to higher interest rates.

New Fed President on the horizon?

Regardless of the tone he adopts this Wednesday, Jerome Powell’s days leading the US central bank are numbered. His term ends in May 2026, and Donald Trump has already made it clear that he disapproves of his interest rate policy and intends to replace him.

The most likely candidate to assume the presidency of the Federal Reserve (Fed) is Kevin Hassett, an economist who, among other roles, has served as an advisor to a cryptocurrency platform, indicating his close ties to the sector.

On Tuesday (9), Hassett stated that there is “plenty of room” for interest rate cuts in the US economy. This stance aligns with that of President Trump, who repeatedly defended a less restrictive monetary policy.

During his participation yesterday in an event organized by the Wall Street Journal, the economist was asked how he would react if President Trump publicly pressured him to cut the interest rate. “You simply do the right thing,” he replied.

He exemplified that in a scenario where inflation rose from 2.5% to 4%, there would be no room for cuts. The likely future Fed chief emphasized that the president trusts his judgment and would have a “firm commitment to not be partisan.”

Kevin Hassett is an economist who has previously worked at the Fed, was a researcher at the American Enterprise Institute, and has deep ties to the Republican Party, having served as an advisor to presidential candidates John McCain (1936-2018), Mitt Romney, and George W. Bush during his re-election in 2004. Additionally, he was one of the main economic advisors during Trump’s first term.

The economist has already disclosed that he holds the equivalent of US$ 1 million in shares of a cryptocurrency platform, besides having served as an advisor to the company. Hassett also participated in the White House’s digital assets working group, which produced a document outlining how cryptocurrency regulation should be in the US.