News 
January 29, 2025 
3 min. 
Bitcoin (BTC) is trading lower this Wednesday (29), driven by investor anticipation ahead of the U.S. Federal Open Market Committee (FOMC) decision. The market expects the Federal Reserve to keep interest rates between 4.25% and 4.5% per year, fueling uncertainty about the future of U.S. monetary policy.
Additionally, the recent inauguration of President Donald Trump adds another layer of attention to the FOMC meeting. Fed Chair Jerome Powell’s remarks will be closely watched, as Trump advocates for rate cuts—an unlikely scenario in the short term. Political tensions and the central bank’s independence could further influence market sentiment.
Market Expectations and Bitcoin’s Reaction
Bitcoin, often impacted by macroeconomic conditions, is feeling the effects of investor caution ahead of the Fed’s decision. If interest rates remain unchanged, the U.S. dollar could strengthen, reducing appetite for riskier assets like cryptocurrencies. However, if Powell signals any shifts in monetary policy, BTC could react sharply, depending on the tone of his speech.
Institutional activity is also under scrutiny. Large market players tend to adjust their positions ahead of key economic decisions, adding to volatility. Meanwhile, technical indicators suggest Bitcoin is nearing a critical support level, and a breakdown could trigger further sell-offs.
U.S. Regulations and Their Impact on Crypto Markets
On the regulatory front, Scott Bessent’s confirmation as the new Treasury Secretary has sparked optimism in the crypto sector. A known cryptocurrency advocate, Bessent could help shape policies favorable to the digital asset market. At the same time, lawmakers in Arizona are pushing forward a bill to establish a Bitcoin reserve, potentially boosting institutional adoption.
Still, uncertainty over federal regulations in the U.S. remains a key concern. Changes in tax policies or stricter restrictions could impact liquidity and investor confidence in the crypto space.
