Bitcoin could rally regardless of what the Federal Reserve FOMC decides this week: Here’s why

Date: 2025-05-06

Key Takeaways:The Fed may pause rates but inject liquidity. Crypto could rally as a recession hedge.The weak US dollar and gold rally signal a shift to scarce assets.The US Federal Reserve Open Market Committee (FOMC) interest rate decision on May 7 will be a defining moment for risk-on assets, including cryptocurrencies. While the consensus points to no change in interest rates, Bitcoin (BTC) and altcoins could see gains if the US Treasury is compelled to inject liquidity to stave off an economic recession.A more accommodative monetary policy could stimulate activity, but the Federal Reserve (Fed) is also contending with a weakening US dollar. Some analysts argue that a US interest rate cut may fail to stimulate growth as recession risks p...

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