Key notes
- The Bitcoin Prize increased to $ 97,771 before the political decision of the Federal Reserve.
- The Fed should hold rates despite the remaining inflation at 3.5%.
- The tone of Jerome Powell will probably influence the short -term management of the BTC.
The price of the largest cryptocurrency, Bitcoin, oscillates key resistance levels, while the world markets await the interest rate decision of the American federal reserve, which was later expected in the day. With increasing economic uncertainty and inflation always a concern, traders are on board.
All eyes are on the coming declaration of the Fed chair, Jerome Powell, who can influence Bitcoin management in the coming weeks.
Investors are preparing for Powell’s remarks while Bitcoin climbs
Bitcoin increased to $ 96,921.96 on May 7, approaching the key threshold of $ 100,000. The rally intervenes while merchants position themselves before the announcement of the Federal Open Market Committee (FOMC).
While the market greatly expects the Fed to hold stable interest rates at 4.33%, attention moved to the tone and detail of the press conference of President Powell at 2 p.m. is.
It should be mentioned that in recent months, Bitcoin has reacted more and more to macroeconomic data and the signs of the Central Bank, in particular after the approval of the negotiated funds on the stock market.
Institutional interest has increased, tightening the bitcoin link with traditional financial markets. As a result, monetary policy updates now have more weight for Bitcoin than ever.
The economy of the United States decreased during the first quarter of 2025, showing signs of weakness after a higher finish at 2024. Real GDP dropped by 0.3%, and consumer spending slowly slowed down.
At the same time, inflation has remained persistent. The basic personal consumer expenditure price index (PCE) (PCE), a key inflation measure for the federal reserve, increased to 3.5%, well above the central bank target.
These figures place the Fed in a difficult place. Although the slowdown in growth generally drops a drop in rates, the increase in inflation and new commercial prices make it more difficult for the central bank to move to a easier policy. According to a Fed CNBC survey, most economists think that the Fed will possibly reduce rates. However, for the moment, Polymarket data suggests 2% of a drop in rate today.
Bitcoin faces key levels while merchants watch the clues
The next Bitcoin movement can depend entirely on the Powell tone. If the Fed recognizes economic weakness and indicates a policy of desire to facilitate policy later in the year, Bitcoin could exceed the resistance of $ 98,000 and retest of the heights of all time. Some analysts estimate that it can exceed $ 100,000 if advice on servants and ETF flows line up.
However, a more athletic position focused on the risk of inflation could lead to a decline. Support is currently observed between $ 92,000 and $ 94,000, with another possible drawback if traders are sold in disappointment. A neutral or vague declaration could also cause price oscillations, in particular given the typical thinner liquidity around Fed events.
Meanwhile, two long -term Bitcoin portfolios of 2013 recently transferred $ 325 million BTC before the interest rate decision of the federal reserve.
For the moment, traders remain cautious. With Bitcoin at a critical time and the Fed’s decision in a few hours, the market is preparing for increased volatility.
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Benjamin Godfrey is a blockchain enthusiast and a journalist who savor the writing of real technology and blockchain innovations to stimulate general acceptance and global integration of emerging technology. His desire to educate people on cryptocurrencies inspires his contributions to renowned media and blockchain sites.
