Crypto markets and global payment companies are likely bracing for key monetary policy decisions this week from the Bank of England (BoE) and the US Federal Reserve.
The BoE is widely expected to cut interest rates by 25 basis points on Thursday, bringing its benchmark rate down to 4.25% from 4.5%.
Market pricing reflects strong expectations for further easing through the summer, as policymakers respond to a weakening economic outlook and mounting global trade pressures.
Recent US tariffs have hit British exporters hard, contributing to a slowdown that has prompted the IMF to cut the UK’s 2025 growth forecast to 1.1% from 1.6%.
Meanwhile, the Fed is expected to hold rates steady at 4.25%–4.5% during its policy meeting on Wednesday (May 7). Inflation remains elevated, and the Fed appears cautious about loosening policy too soon despite first-quarter GDP contracting by 0.3%.
According to the CME FedWatch Tool, markets are pricing in a 96% chance of no rate change this month.
Crypto markets on alert
Throughout 2025, the cryptocurrency market has demonstrated sensitivity to monetary policy decisions. At the time of reporting, Bitcoin was trading just under $94,000, slightly lower in recent sessions as investors adopt a wait-and-see approach ahead of the Fed’s decision.
Ethereum is holding near $1,813, while major altcoins like XRP and Cardano have seen modest declines in the past 48 hours, according to Barrons and CryptoRank.
“Crypto remains highly sensitive to macro signals,” analysts at Barron’s wrote. “A more dovish Fed could ignite another leg up for risk assets.”
Ethereum continues to benefit from the success of its “Dencun” upgrade, which has eased network congestion and sharply reduced gas fees.
What about Trump?
Since returning to office, President Donald Trump has taken significant steps to promote the crypto industry.
In March 2025, Trump signed an executive order establishing a Strategic Bitcoin Reserve, utilising approximately 200,000 BTC already held by the US government. This reserve aims to solidify Bitcoin’s role in national financial strategy. Alongside Bitcoin, the administration has created a stockpile for other cryptocurrencies, including Ethereum, Solana, Cardano, and XRP, signaling a broader embrace of digital assets.
Trump has rolled back several regulations perceived as restrictive to the crypto industry, including nullifying an expanded IRS rule that broadened the definition of a crypto broker.
In addition, through Executive Order 14178, Trump has prohibited federal agencies from developing or promoting central bank digital currencies (CBDCs), reflecting a preference for decentralised cryptocurrencies over government-issued digital money.
President Trump’s crypto-friendly policies are closely tied to his advocacy for lower interest rates. While the Fed maintains independence from the US President, Trump has criticised the actions of the US central bank on numerous occasions this year.
Despite a 0.3% contraction in GDP in Q1 of 2025, the Fed has maintained its benchmark interest rates at 4.25%–4.5%, citing concerns over inflation and the need for more definitive economic data before making changes.
In April 2025, Trump expressed frustration over the Fed’s reluctance to implement emergency rate cuts, especially in the wake of market volatility linked to his administration’s tariff policies. Although Trump later stated he would not remove Fed Chair Jerome Powell before his term ends in May 2026, the public disagreements have raised concerns about the central bank’s independence. The Trump administration’s policies, including significant tax cuts and the imposition of steep tariffs, have been criticised for potentially exacerbating inflation. These measures could compel the Fed to maintain or even increase interest rates to counteract inflationary pressures, further straining the relationship between the executive branch and the central bank.
