Fed Chair Jerome Powell’s comments post-FOMC have sparked significant volatility in crypto prices, despite the Federal Reserve keeping its target rate unchanged, in line with the market expectations.
Powell adopted a mildly hawkish and largely cautious stance in his speech, revealing that the stagflationary impact of Donald Trump’s tariff policy is starting to become visible and will become more apparent in the coming months.
The Bitcoin price momentarily fell below the $104k support post-FOMC, even as Trump showed a willingness to strike a deal with Iran to stop the conflict in the Middle East. BTC has since bounced back up to $104,800 at press time.
Despite Powell’s hawkishness, prominent analysts remain bullish on Bitcoin and altcoins in the mid-term, with some suggesting that the crypto bull run could resume this week itself.
Smart money investors, whales and institutions are buying the dip, and so should the sidelined retail traders.
Besides the large-cap altcoins like Ethereum and XRP, Solana meme coin Dogwifhat (WIF), AI coin Bittensor (TAO) and low-cap gems like Solaxy (SOLX) are among the best cryptos to buy.
FOMC Day Highlights: Everything Crypto Investors Need To Know
The Federal Reserve kept the Federal target rate unchanged at 425 – 450 basis points, in line with the market expectations.
Crucially, the Fed’s Survey of Economic Projections, also known as the dot plot, highlights that the central bank still expects two interest rate cuts this year. This is also in line with the CME FedWatch’s aggregated probabilities, which track the bets made by interest rate traders.
The Fed’s economic projections highlighted stagflationary risks, considering it lowered the 2025 GDP estimate to 1.4% and raised the inflation estimate to 3%.
Chair Jerome Powell adopted a mildly bearish stance, claiming that the US economy is already beginning to see the impact of Trump’s tariffs. He highlighted a 0.1% uptick in the unemployment rate and a 0.3% bump in the recent inflation data.
Crucially, Powell revealed that he expects a “meaningful amount” of inflation in the coming months.
Nevertheless, the Fed Chair did admit that interest rate cuts will soon be the appropriate move.
Should Sidelined Investors Buy The Dip?
Despite today’s slightly hawkish FOMC, prominent analysts believe the crypto bull market remains intact.
The global liquidity is soaring and the global economic index is rising, with both indicators historically being excellent predictors of Bitcoin’s trajectory. In fact, the Global M2 supply indicates that the BTC price is headed to $160,000.
The recent whale and institutional accumulation is another evidence of the upcoming bull rally. On Tuesday, a day when the Bitcoin price fell by 2%, BlackRock’s IBIT ETF recorded $639 million in inflows. It has now added over $2 billion since June 9th, bringing its total assets under management to over $50.6 billion.
Meanwhile, Ethereum’s whale accumulation past week reached its highest level since 2017, data from Glassnode reveals.
Whales and institutions are buying the dip, so should the sidelined retail investors.
Best Cryptos To Buy Now
Experts remain bullish on large-cap altcoins, with Bitcoin, Ethereum and XRP being viewed as the best cryptos to buy now.
Among the mid-caps, AI coin Bittensor (TAO) is seeing strong latent demand as it held a key support level despite the broader market bearishness. The TAO price appears to be poised for a 30% rally to $450.
Meanwhile, meme coins Pepe and Dogwifhat are showing bullish strength as well.
Among the low-caps, all eyes are now on Solaxy (SOLX) and its token launch on June 23rd. Whales and smart money investors are still FOMO buying, with its presale adding nearly $1 million every day and reaching $54.3 million at press time.
The Solaxy Testnet is already live, and its Solana layer-2 chain is expected to become fully operational by early July. The recently released roadmap reveals that the ETH-SOL Hyperlane bridge is set to go live on June 23rd, and the mainnet will launch on July 7th.
Solay’s competitor to Pump.fun, the Igniter Protocol, will launch on July 21st. SOLX holders will be able to launch their own meme coins, which will go live on the Solaxy DEX.
Solaxy is building a full-stack Layer-2 ecosystem within Solana, which tend to reach multibillion-dollar valuations. Unsurprisingly, many analysts are calling SOLX the next 10x crypto.
Visit Solaxy Presale
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