PANews|Jan 26, 2026 00:53
[Analysis: Market expects the Fed to pause rate cuts this week, Powell's dovish or hawkish signals may impact Bitcoin trends]
According to CoinDesk, the market widely expects the Federal Reserve to keep interest rates unchanged this Wednesday. The key focus of this meeting lies in Fed Chair Powell's remarks during the post-meeting press conference, as his statements may provide directional guidance for risk assets, including Bitcoin. The core market concern is whether this pause in rate cuts will be interpreted as a 'hawkish pause' or a 'dovish pause.' If Powell emphasizes inflation risks, it may suppress rate cut expectations and pressure risk assets; conversely, if he hints that the pause in rate cuts is temporary and leaves the door open for resuming rate cuts in the coming months, it could boost risk assets like Bitcoin. Additionally, if officials appointed by Trump vote against the decision to maintain rates, it may strengthen market expectations for future easing policies.
Powell's explanation of the decision to maintain rates could provide support for the U.S. dollar, thereby exerting pressure on Bitcoin, which is priced in dollars. He may also be questioned about the Trump administration's recent housing affordability measures (which could drive short-term inflation), judicial investigations targeting him personally, and bond market volatility triggered by Japan, among other issues. These remarks could further intensify market fluctuations.
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