The Federal Reserve is having a closed-door meeting today to discuss potentially cutting interest rates. This would help crypto in a few ways, spurring risky investments and possibly even weakening the dollar.
Fed Chair Jerome Powell has been hesitant to cut rates, but he is under a lot of pressure. BlackRock’s CEO Larry Fink is currently pessimistic about rate cuts, claiming that they may even increase this year.
Soon after, the White House denied the rumors, resulting in a crash. However, the Federal Reserve is having a closed-door meeting today, and it may plan to cut interest rates:
“A closed meeting of the Board of Governors of the Federal Reserve System at will be held 11:30 am on Monday, April 7, 2025. The following matters of official Board business are tentatively scheduled to be considered at that meeting: review and determination by the Board of Governors of the advance and discount rates to be charged by the Federal Reserve Banks,” the Fed’s website read.
There are many reasons why the Federal Reserve could cut interest rates. High rates make fixed-income investments more attractive, drawing capital away from riskier assets like stocks and cryptocurrencies, while low rates make these assets more attractive.
Rate cuts have often corresponded with market rallies, especially with ZIRP after the 2008 crash.
Fed Chair Jerome Powell initially signaled that he was reluctant to cut rates at this moment, but pressure has been building for him to do so. Unfortunately, that may not matter yet.
Larry Fink, BlackRock’s pro-crypto CEO, has been very pessimistic about possible cuts. In a recent televised interview, he claimed that most CEOs believe the US is already in a recession and that the country is currently not a “global stabilizer” in the markets.
Under these conditions, he stated that there’s a 0% chance of 4 to 5 rate cuts and that rates may even increase.
BREAKING: Blackrock CEO Fink says that he worries that Trump’s actions are much more inflationary than the markets expect, and the economy is weakening as we speak.
He also says that he sees a 0% chance of four or five interest rate cuts this year, and sees a chance of interest… pic.twitter.com/wyTpBoCP5W
When the Federal Reserve cuts interest rates, it isn’t a bullish signal across the board. They also tend to weaken the US dollar as its yield advantage diminishes relative to other currencies.
This would also be good for crypto, considering its use as a store of value, but the Fed isn’t particularly interested in that. The industry won’t be the deciding factor either way.
Still, other commentators have been highly skeptical of Fink’s claim. Powell is under a lot of pressure to cut rates, so raising them would buck market expectations. Investors are betting on multiple rate cuts, and these hypothetical cuts may be priced to a certain extent.
Looking back at previous cycles, periods of rate cuts have often coincided with market rallies. For instance, during the post-2008 recovery, rate cuts revived equity and emerging asset classes.
Overall, lower rates typically mean easier access to credit, leading to more liquidity in the market. This extra liquidity can help drive up demand for riskier assets, including cryptocurrencies.
So, If the FOMC signals a shift toward lower interest rates, this could boost overall market confidence. As traditional markets begin to stabilize and recover, crypto markets might experience a rebound.
Investor sentiment, already shaken by the recent sell-offs and heightened volatility, could turn more optimistic with the prospect of easing monetary conditions.
Most importantly, institutional investors, who have been cautious during the current volatile period, may adjust their strategies in a lower-rate environment.
With lower fixed-income yields, portfolio managers could increase their allocation to alternative assets, including cryptocurrencies, to achieve higher returns. This influx of institutional capital could lend credibility to the crypto market and help drive a recovery.
Vietnam has approved a landmark bill to create a structured legal environment for digital assets. The new legislation, called the Law on Digital Technology Industry, will take effect in January 2026.
This lays the groundwork for regulated crypto activity and is designed to enable the growth of the emerging industry.
Crypto assets are digital instruments that rely on encryption and blockchain technologies for creation, issuance, storage, and transfer. These include tokens used to validate transactions and verify ownership on distributed networks.
In contrast, virtual assets are used primarily for trading or investment purposes. They do not include instruments like securities, stablecoins, central bank digital currencies (CBDCs), or other regulated financial products.
The legislation grants the government authority to define these asset classifications, set business conditions, and oversee their operations.
It also mandates relevant agencies to enforce strict anti-money laundering (AML) and counter-terrorism financing (CTF) standards to protect the integrity of the ecosystem.
Beyond crypto regulation, the law lays a foundation for broader technological advancement.
It introduces policies to strengthen Vietnam’s digital infrastructure and foster growth in areas such as artificial intelligence, semiconductors, and high-tech manufacturing.
According to the report, technological firms working on digital products or advanced computing systems will gain access to various incentives. These include support for research and development, talent training, and collaborative infrastructure building.
Industry players believe that a formal framework will help Vietnam attract more investment and position itself as a serious contender alongside established blockchain hubs like Singapore.
Notably, Vietnam’s regulatory push follows the Ministry of Finance’s recent efforts to launch a pilot crypto trading platform with support from the Bybit crypto exchange.
China’s recent directive for its state-owned banks to decrease reliance on the US dollar has amplified a growing trend among countries seeking alternatives to the dominant reserve assets. In some instances, Bitcoin has emerged as a viable competitor.
BeInCrypto spoke with experts from VanEck, CoinGecko, Gate.io, HashKey Research, and Humanity Protocol to understand Bitcoin’s rise as an alternative to the US dollar and its potential for greater influence in global geopolitics.
The Push for De-Dollarization
Since the 2008 global financial crisis, China has gradually reduced its reliance on the US dollar. The People’s Bank of China (PBOC) has now instructed state-owned banks to reduce dollar purchases amid the heightened trade war with US President Donald Trump.
China is among many nations seeking to lessen its dependence on the dollar. Russia, like its southern neighbor, has received an increasing number of Western sanctions– especially following its invasion of Ukraine.
Furthermore, Rosneft, a major Russian commodities producer, has issued RMB-denominated bonds, indicating a shift towards RBM, the Chinese currency, and a move away from Western currencies due to sanctions.
This global shift away from predominant reserve currencies is not limited to countries affected by Western sanctions. Aiming to increase the Rupee’s international use, India has secured agreements for oil purchases in Indian Rupee (INR) and trade with Malaysia in INR.
The country has also pursued creating a local currency settlement system with nine other central banks.
As more nations consider alternatives to the US dollar’s dominance, Bitcoin has emerged as a functional monetary tool that can serve as an alternative reserve asset.
Why Nations Are Turning to Bitcoin for Trade Independence
Interest in using cryptocurrency for purposes beyond international trade has also grown. In a notable development, China and Russia have reportedly settled some energy transactions using Bitcoin and other digital assets.
“Sovereign adoption of Bitcoin is accelerating this year as demand grows for neutral payments rails that can circumvent USD sanctions,” Matthew Sigel, Head of Digital Assets Research at VanEck, told BeInCrypto.
Two weeks ago, France’s Minister of Digital Affairs proposed using the surplus production of EDF, the country’s state-owned energy giant, to mine Bitcoin.
Last week, Pakistan announced similar plans to allocate part of its surplus electricity to Bitcoin mining and AI data centers.
Meanwhile, on April 10, New Hampshire’s House passed HB302, a Bitcoin reserve bill, by a 192-179 vote, sending it to the Senate. This development makes New Hampshire the fourth state, after Arizona, Texas, and Oklahoma, to have such a bill pass a legislative chamber.
If HB302 is approved by the Senate and signed into law, the state treasurer could invest up to 10% of the general fund and other authorized funds in precious metals and specific digital assets like Bitcoin.
According to industry experts, this is only the beginning.
VanEck Predicts Bitcoin to Become a Future Reserve Asset
Sigel predicts Bitcoin will become a key medium of exchange by 2025 and, ultimately, one of the world’s reserve currencies.
His forecasts suggest Bitcoin could settle 10% of global international trade and 5% of global domestic trade. This scenario would lead to central banks holding 2.5% of their assets in BTC.
According to him, China’s recent de-dollarization will prompt other nations to follow suit and lessen their reliance on the US dollar.
“China’s de-dollarization efforts are already having second- and third-order effects that create opportunities for alternative assets like Bitcoin. When the world’s second-largest economy actively reduces its exposure to US Treasuries and promotes cross-border trade in yuan or through mechanisms like the mBridge project, it signals to other nations—especially those with strained ties to the West—that the dollar is no longer the only game in town,” Sigel said.
For Zhong Yang Chan, Head of Research at CoinGecko, these efforts could prove catastrophic for the United States’ dominance.
“Broader de-dollarization efforts by China, or other major economies, will threaten the status of the dollar’s global reserve currency status. This could have [a] profound impact on the US and its economy, as this would lead to nations reducing their holdings of US treasuries, which the US relies on to finance its national debt,” he told BeInCrypto.
However, the strength of the US dollar and other dominant currencies has already shown signs of weakening.
A General Wave of Currency Decline
Sigel’s research shows that the four strongest global currencies—the US dollar, Japanese yen, British pound, and European euro—have lost value over time, particularly in cross-border payments.
The decline of these currencies creates a void where Bitcoin can gain traction as a key alternative for international trade settlements.
“This shift isn’t purely about promoting the yuan. It’s also about minimizing vulnerability to US sanctions and the politicization of payment rails like SWIFT. That opens the door for neutral, non-sovereign assets—especially those that are digitally native, decentralized, and liquid,” Sigel added.
This lack of national allegiance also sets Bitcoin apart from traditional currencies.
Bitcoin’s Appeal: A Non-Sovereign Alternative
Unlike fiat money or central bank digital currencies (CBDCs), Bitcoin doesn’t respond to any one nation, which makes it appealing to some countries.
For Terence Kwok, CEO and Founder of Humanity Protocol, recent geopolitical tensions have heightened this belief.
For these same reasons, experts don’t expect Bitcoin to replace fiat currencies fully but rather provide a vital alternative for certain cases.
A Replacement or an Alternative?
While Bitcoin offers several advantages over traditional currencies, Gate.io’s Kevin Lee doesn’t foresee its eventual adoption causing a complete overhaul of the currency reserve system.
Recent data confirms this. The number of Bitcoin transactions has fallen significantly since the last quarter of 2024. Bitcoin registered over 610,684 transactions in November, but that number dropped to 376,369 in April, according to Glassnode data.
The number of Bitcoin active addresses paints a similar picture. In December, the network had nearly 891,623 addresses. Today, that number stands at 609,614.
Bitcoin number of active addresses. Source: Glassnode.
This decline suggests reduced demand for its blockchain in terms of transactions, usage, and adoption, meaning fewer people are actively using it for transfers, business, or Bitcoin-based applications.
Meanwhile, the Bitcoin network must also ensure its infrastructure is efficient enough to meet global demand.
Can Bitcoin Scale for Global Use?
In 2018, Lightning Labs launched the Lightning Network to reduce the cost and time required for cryptocurrency transactions. Currently, the Bitcoin network can only handle around seven transactions per second, while Visa, for example, handles around 65,000.
“If expansion solutions (such as the Lightning Network) fail to become popular, Bitcoin’s ability to process only about 7 transactions per second will be difficult to support global demand. At the same time, as Bitcoin block rewards are gradually halved, the decline in miners’ income may threaten the long-term security of the network,” Guo, Director of HashKey Research explained.
While the confluence of geopolitical shifts and Bitcoin’s inherent characteristics undeniably create a space for its increased adoption as an alternative to the US dollar and even a potential reserve asset, significant hurdles remain.
Achieving mainstream Bitcoin adoption hinges on overcoming scalability, volatility, regulatory hurdles, stablecoin competition, and ensuring network security.
The unfolding panorama suggests Bitcoin will carve out an important role in the global financial system, though a complete overhaul of established norms seems unlikely in the immediate future.
