Fed’s Crucial Move Ahead: What’s Next for the U.S. Economy and Bitcoin?

• U.S. job growth exceeds forecasts, but economists warn about the delayed impact of tariffs.
• Markets remain cautious, focusing on U.S.-China trade talks and Federal Reserve actions.
• Bitcoin’s price falls below $95K as economic uncertainties rise ahead of the Fed’s meeting.

The recent economic report showed contradictory indicators within the U.S. economy. Nonfarm payrolls rose by 177K in April, exceeding analyst predictions of 133K, signaling job growth. However, the unemployment rate showed no change, staying at 4.2%, which indicates the labor market maintained its current state. The economic future remains unclear because economists warn that the complete impact of recent tariff restrictions has yet to materialize.

Financial markets reacted with measured approaches after receiving the economic numbers. The S&P 500 extended its consecutive winning pattern to 10 days, reversing the market declines that occurred after the Liberation Day. 

U.S.-China Trade Uncertainty

Markets focus on U.S.-China trade discussions and Federal Reserve policy actions following the completion of the earnings reporting cycle. President Trump officially declared he would avoid meeting with the Chinese presidential staff this week.

He also discussed the potential for future trade agreements with other nations, keeping traders on edge. Market reactions are closely tied to trade developments, which can either result in new agreements or continuing disputes.

Related: March PCE Report Shows Mixed Inflation Signals, Casting Doubt on Fed Rate Cuts

The Federal Reserve is expected to keep its plan to maintain current interest rates in its upcoming policy session. The inflationary pressures are leveling off, but import tariffs worry analysts regarding their influence on prices. The central bank needs to decide whether it will oppose President Trump’s political push for rate cuts or should modify its approach according to emerging market conditions.

Strategy Doubles Its Target

Strategy demonstrated steadfast Bitcoin commitment while announcing its worst-ever financial performance during Q1. The company announced an increased capital-raising target to $84 billion, which affirmed its strong conviction that Bitcoin will prosper in the long term. The company pursues its digital assets strategy despite reporting financial losses due to new accounting requirements for digital assets.

Related: Massive GDP Miss Fuels Recession Fears: Will the Fed Pivot Save Bitcoin?

Bitcoin’s market value dropped below $95,000 on Monday due to expanding economic uncertainties ahead of the Federal Reserve meeting. The ongoing market uncertainty has traders considering possible price drops to $90,000 or below.