Bitcoin falls back to 94K, Musk focuses on $GORK surge, the market focuses on the Fed's interest rate decision

Last Friday, the strong U.S. non-farm employment data and potential easing of U.S.-China trade tensions led to continued stock market gains. Bitcoin dropped from 96K to 94K, while Ethereum remained hovering around 1,800. After receiving Musk's attention over the weekend, the meme coin gork surged by over 50%. This week, the Federal Reserve will announce its interest rate decision, with traders postponing their rate cut expectations. Currently, the earliest estimated rate cut is in late July by one point, with a total of three points expected for the year.

Strong Non-Farm Employment, Will the Fed Delay Rate Cuts?

The U.S. April non-farm employment added 177,000 jobs, higher than the expected 138,000. The data shows a robust labor market and inflation above the Fed's target, leading people to expect the Fed to maintain a wait-and-see attitude until more evidence of economic downturn emerges.

Although U.S. President Trump seized the opportunity of unexpectedly strong job growth to increase pressure on Fed Chair Powell, stating there is no reason to delay rate cuts. Treasury Secretary Scott Bessent also pointed out last week that the two-year Treasury yield previously dropped, indicating the market believes the Fed's rate cut pace is not fast enough.

However, Powell and other policymakers were caught off guard by the post-pandemic consumer price surge. They have consistently emphasized that they are not in a hurry to react since inflation continues to remain above the 2% target.

Before announcing the week's rate resolution on Wednesday, Powell and his colleagues stressed that the central bank must ensure that any price increases caused by Trump's tariff measures do not lead to another sustained consumer price increase. But they also clearly stated that they would intervene if the economy deteriorates.

According to the CME FedWatch index, traders have postponed their expectations for Fed rate cuts. They currently estimate the earliest rate cut will be in late July by one point, with a total of three points for the year, compared to the previous estimate of June and four points.

Bitcoin Drops to 94K, Musk Notices $GORK Surge

Bitcoin dropped from 96K to 94K, while Ethereum continued to hover around 1,800. The top ten cryptocurrencies saw slight declines over the weekend.

The hottest topic this weekend was the meme coin gork! Gork, a meme coin mimicking xAI's grok chatbot, is now listed on Binance Alpha. Musk began paying attention to the official X account of $GORK on May 3, 2025, and responded with a smiley emoji to related posts. This action was interpreted by the market as indirect support for $GORK, directly causing its price to surge by over 50% in a short time.