Analysis: Market expects the Federal Reserve to pause interest rate cuts this week. Powell's dovish or hawkish signals may influence Bitcoin's price movement.

According to Mars Finance, reports from CoinDesk indicate that the market generally expects the Federal Reserve to keep interest rates unchanged this Wednesday. The key focus of this meeting lies in the statements made by Federal Reserve Chair Jerome Powell during the post-meeting press conference, as his remarks could provide directional guidance for risk assets (including Bitcoin). The core market concern is whether this pause in rate hikes will be interpreted as a “hawkish pause” or a “dovish pause.” If Powell emphasizes inflation risks, it could dampen rate cut expectations and pressure risk assets; conversely, if he hints that the pause is temporary and leaves the door open for rate cuts in the coming months, it could boost risk assets like Bitcoin. Additionally, if officials appointed by Trump oppose the decision to hold rates steady, it may reinforce market expectations for future easing policies. Powell’s explanation for maintaining rates could support the US dollar, thereby exerting pressure on dollar-denominated Bitcoin. He may also be asked about recent housing affordability measures by the Trump administration (which could raise short-term inflation), ongoing judicial investigations into him personally, and bond market volatility triggered by Japan, among other issues. These statements could increase market volatility.