The FOMC concluded its latest meeting by announcing that it will not cut US interest rates. This decision was largely priced in, and the crypto market hasn’t seriously suffered.
Rate cuts would’ve provided a bullish narrative to juice fresh investment, which the market desperately needs. Bearish signals are growing alongside fears of a US recession.
However, the FOMC made its report to the public and claimed that no rate cuts would be taking place.
“The Committee seeks to achieve maximum employment and inflation at the rate of 2 percent over the longer run. Uncertainty around the economic outlook has increased. The Committee is attentive to the risks to both sides of its dual mandate. In support of its goals, the Committee decided to maintain the target range for the federal funds rate at 4.25% to 4.5%,” it said.
This news more or less fits with the industry’s expectations. Fed Chair Jerome Powell already clearly stated that the FOMC doesn’t plan to cut interest rates.
The industry hoped that rate cuts could provide a bullish narrative, especially while the markets are afraid. For now, it seems like it’ll need to find an optimistic signal somewhere else.
Despite uncertainty from tariffs and bold fiscal policies, officials expect interest rates to drop by another half percentage point by 2025. Since the Fed typically adjusts rates in 0.25% steps, that means we’re likely to see two cuts this year.
Federal Reserves Still Project Two Rate Cuts This Year. Source: CNBC
Rate cuts would be bullish for investors, especially for risk-on assets like cryptoassets. However, this isn’t the Federal Reserve’s only concern. The FOMC alluded to its “dual mandate” when denying rate cuts. In other words, it needs to juggle investor concerns with consumer inflation fears, uncertainty around Trump’s tariffs, and a possible US recession.
If the FOMC were to slash interest rates, it would likely boost US inflation. The most recent CPI report was better than expected, and some in the industry hoped that this would build confidence. Ultimately, the main hopes rested with President Trump, who personally advocated for rate cuts. However, he didn’t make a major intervention.
It’s not all bad, though. The FOMC also announced would slow Quantitative tightening (QT) by reducing the monthly redemption cap on Treasury securities from $25 billion to $5 billion.
Some members of the community were pleased by this news, as slower QT can increase market liquidity. This announcement is at least some consolation for investors.
In any event, this lack of rate cuts was expected and priced in. The FOMC didn’t shock anybody by refusing to cut interest rates, and the market hasn’t been chaotic. A few of the top-performing cryptoassets suffered minor losses, but no substantial drops have materialized.
Crypto Reacts to FOMC Decision. Source: BeInCrypto
The crypto industry has been desperate for a bullish narrative, and some major players are visibly cracking at the seams.
The FOMC, however, did not provide this narrative via rate cuts. Hopefully, crypto will find something else to be optimistic about before a full-blown market correction takes hold.
Polymarket, the world’s leading decentralized prediction platform, is close to completing a $200 million funding round that would push its valuation beyond $1 billion.
This milestone would place the platform into the prestigious “unicorn” club. Moreover, Polymarket has recently seen a rebound in trading volume and new user signups following the conclusion of the US election.
Polymarket Nears $200 Million Raise, Eyes Unicorn Status
According to Reuters, Polymarket is preparing to finalize a $200 million fundraising round led by billionaire Peter Thiel’s Founders Fund.
Data from Cryptorank shows that Polymarket raised $74 million between 2020 and 2024. Notable investors, including Ethereum co-founder Vitalik Buterin, have backed the platform’s future.
Founders Fund led a $45 million Series B round in May last year. The current round signals the fund’s continued commitment and long-term belief in Polymarket.
Polymarket’s Fundraising History From 2020 to 2024. Source: Cryptorank
The new capital is expected to help Polymarket expand its infrastructure, enhance product development, and address legal challenges, especially in the US, where the platform is currently banned due to gambling regulations.
This agreement makes Polymarket the official prediction market partner of X. The integration combines Polymarket’s forecast data with real-time analysis from Grok AI and posts on X to provide users with deeper insights.
The partnership strengthens Polymarket’s market position and grants it access to millions of users worldwide.
Monthly Trading Volume on Polymarket Recovers Above $1 Billion
According to Dune Analytics, May 2025 marked a strong comeback for Polymarket, with trading volume exceeding $1 billion. This follows a decline earlier in the year caused by post-election fatigue.
Polymarket’s Trading Volume And User Data. Source: Dune
The platform also recorded over 100,000 new accounts each month. It maintained an average daily trading volume of $40 million, with around 20,000 active traders.
This resurgence reflects growing community confidence in the potential of decentralized prediction markets. It comes at a time when both the crypto sector and the broader world are experiencing increasingly eventful and attention-grabbing developments.
Despite the growth, Polymarket continues to face significant regulatory challenges. Recently, the US CFTC issued a subpoena to Coinbase seeking information related to Polymarket. It is to be noted that Polymarket has been inaccessible to US residents since 2022. This followed a $1.4 million settlement with the CFTC for operating an unregistered derivatives trading platform.
Polymarket has also faced legal trouble in France for violating gambling laws related to prediction markets. Furthermore, some people believe that large investors can manipulate market prices, raising questions about the platform’s neutrality.
If Bitcoin reaches $119,000 by the end of August, MicroStrategy’s (now Strategy) third-quarter earnings could set a new record for a publicly traded company’s highest quarterly profit in financial history. This impressive figure would easily top Nvidia’s earnings and approach Apple’s record.
As Bitcoin gains widespread acceptance, it prompts the question of whether major players will adopt Strategy’s plan by the book. According to Brickken analyst Enmanuel Cardozo, it depends. Though Strategy’s current achievements are impressive, the quality of its long-term health comes into question.
Could MicroStrategy’s Bitcoin Gains Top Tech Giants?
Michael Saylor’s aggressive Bitcoin plan for Strategy (formerly MicroStrategy) continues to remain strong through sunshine or rain. For now, it shows no signs of slowing. With 592,100 Bitcoins on its balance sheet, Strategy is the biggest corporate holder worldwide.
As Bitcoin’s price continues to climb, so will Strategy’s overall earnings. This large-scale success has already led several publicly traded companies to follow suit. The question is whether other corporate giants will also take the leap and purchase Bitcoin.
If Bitcoin closes Q3 above $119,000, and Strategy has 592,100 bitcoins acquired at an average cost of $70,666 each, Strategy’s estimated quarterly net earnings would be approximately $28.59 billion.
Strategy’s most recent Bitcoin purchases. Source: Strategy.
This figure would exceed Nvidia’s highest reported quarterly net income of $22.091 billion, making it Strategy’s largest quarterly earnings and a significant outlier among many publicly traded tech companies.
Since Strategy uses fair value accounting for its Bitcoin, it directly reflects these gains in its net income. If Bitcoin’s price continues to rise beyond this level, Strategy’s earnings could potentially challenge Apple’s current record-setting quarterly net income of $36.33 billion.
Could this unprecedented success generate a fear of missing out among other competitors?
To Buy or Not to Buy
Cardozo expressed excitement over how such a scenario could generate further Bitcoin adoption by other corporate trailblazers.
“With [Strategy’s] 592,100 BTC holdings, other companies might feel the need to finally jump in, especially as Strategy’s performance is outpacing traditional metrics. That kind of success won’t go unnoticed and will eventually push their boards to at least explore Bitcoin to keep up,” he told BeInCrypto.
Some of Bitcoin’s advantages over assets may even appeal to companies with massive earnings, like Nvidia or Apple.
“There’s a solid case for tech giants like Apple and Nvidia to diversify into Bitcoin, and I’m loving the possibilities here. On the pro side, Bitcoin is built as a perfect hedge against fiat devaluation because of its limited supply and decentralized nature,” Cardozo added.
However, a playbook like Strategy’s comes with many risks, and it’s not a one-size-fits-all win—even for Strategy itself.
Strategy’s Financial Health: A Deeper Dive
While Strategy has seen significant profits from holding Bitcoin, these gains primarily stem from a tax advantage, not from its core business operations.
“These gains, driven by fair value accounting, aren’t cash in hand like Apple’s billions from iPhone sales, they are paper profits tied to Bitcoin’s price. Investors and analysts should see this as a speculative boost, not a sign of operational strength, and focus on cash flow and debt to gauge real business health,” Cardozo explained.
Effectively comparing Strategy’s net income to other characteristics like cash flow and debt indeed reveals more about the problems that may lie ahead for the company, especially if Bitcoin’s price were to decline steadily.
Changes in Bitcoin’s price over the past three months. Source: BeInCrypto.
According to the firm’s most recent SEC filings, Strategy reported its outstanding debt amounted to $8.22 billion as of March 2025. It also had a negative cash flow of -$2 million, representing a significant decline year over year.
Though these numbers make sense considering Strategy’s aggressive Bitcoin buying, they also demonstrate that the company’s core software business is not generating enough cash to cover its expenses. Strategy said so itself in its latest filing.
“A significant decrease in the market value of our Bitcoin holdings could adversely affect our ability to satisfy our financial obligations,” read the statement.
It must issue debt and new equity to raise capital to continue its strategy. The plan is risky, to say the least.
Is Bitcoin Right for Every Company?
Given that Strategy’s main income comes from its Bitcoin purchases, Cardozo argues that other companies should carefully consider their financial position before taking a similar approach.
“Analysts should weigh this against operational metrics; a company living on unrealized gains is riskier by nature. I think it’s an innovative strategy, but for long-term health, especially for traditional businesses, cash-generating operations beat paper profits any day, investors should keep that in mind,” he said.
However, as Bitcoin increasingly symbolizes technological innovation, companies aligning with this principle might feel pressured to embrace it. They wouldn’t need to acquire nearly 600,000 Bitcoins, like Strategy, to make such a statement.
They also have a resilient enough treasury to break a fall.
“I’m pretty confident that Apple and Nvidia will eventually invest into Bitcoin, especially with its current track record over the last 10 years,” Cardozo said, adding, “their treasuries could handle a small 1-5% allocation, and not only be hedged against inflation but also as a branding move since they represent the very image of innovation which will also pressure them to do so eventually.”
Yet, ultimately, companies like Apple and Nvidia cater to different customers. Adding Bitcoin to their balance sheets may cause them to lose clients.
The Sustainability Question for Bitcoin Adopters
It’s no secret that Bitcoin mining is extensively damaging to the environment. Strategy, through its Bitcoin acquisitions, directly contributes to the high energy consumption levels associated with the industry.
“Bitcoin’s annual energy consumption is equivalent to a mid-sized country and of course it’s a conflict right off the bat with Apple’s 2030 carbon neutrality target and Nvidia’s renewable energy push,” Cardozo told BeInCrypto.
These companies could risk damaging their public image by associating with an industry that conflicts with their own Environmental, Social, and Governance (ESG) goals.
“Customers and activists might pressure them, seeing it as greenwashing, especially with sustainability being a big part of their public image… they could align Bitcoin with their ESG goals and keep their image intact as Bitcoin mining becomes more sustainable than traditional banking’s legacy system,” Cardozo added.
Ultimately, while the allure of Bitcoin’s gains might pressure tech giants like Apple and Nvidia to follow Strategy’s lead, such a consideration may cause these companies more problems than profits.
