- Buy Crypto
- Markets
Futures- Spot
- Copy Trade
- Earn
- More
Crypto Market Sentiment Tense as Bitcoin Braces for FOMC
By: beincrypto|2025/05/06 18:15:01
0
Share
Bitcoin (BTC) and the broader crypto market await Wednesday’s FOMC (Federal Open Market Committee) meeting and the subsequent Jerome Powell press conference.The US Federal Reserve (Fed) will announce its latest interest rate decision on Wednesday.Crypto Market on Edge as Bitcoin Awaits FOMC VerdictAccording to data on the CME FedWatch Tool, market participants assign a 95.6% probability that the Fed will hold rates steady at 4.25% – 4.5%. With this, attention is now squarely focused on Fed Chair Jerome Powell’s tone and guidance at the Wednesday conference.Interest rate probabilities. Source: CME FedWatch Tool“...if the 3.5% [now 4.4%] ends up playing out, the markets will have an insane positive reaction,” wrote Bitcoinsensus.Despite the high likelihood of the Fed keeping interest rates steady, volatility remains a near certainty. Traders have adopted a risk-off stance, with Bitcoin price consolidating in the $94,000 range.Similarly, ETF (exchange-traded fund) inflows are slowing, alongside rising liquidations. Swissblock analysts describe the atmosphere as a “battle” of resistance. They cite negative funding rates and high open interest, suggesting bears are intensifying short positions.“The $97,000–$98,500 range is key. Momentum could trigger short liquidations, pushing BTC up. But beware: a bear trap might flip into a bull trap if conviction fades,” Swissblock warned.Bitcoin Price Analysis. Source: TradingViewThis week’s FOMC meeting marks a pivotal moment for risk assets. Historical data shows that three of the last five FOMC decisions led to bullish outcomes for Bitcoin. However, this one comes amid heightened uncertainty.The market is still digesting softer GDP prints, ongoing trade war tensions, and inflation worries, particularly in light of Trump’s tariff rhetoric, which has clouded rate-cut expectations for June.“This Wednesday’s May FOMC meeting will result in an interest rate hold but also June expectations have flipped to a hold,” Veteran trader Mathew Dixon noted.Powell’s Words May Trigger Bitcoin Breakout—or BreakdownSuch ambiguity is feeding the market’s anxiety. In December 2023, Powell’s hawkish pivot sparked a “bloodbath” across risk markets, and some traders now fear a repeat.“Bull markets don’t die of old age—they’re murdered by the Fed. If Powell’s tone echoes December’s bloodbath or ignores negative GDP, markets may repeat the same violent flush... It’s a drunken game of darts for Wall Street analysts,” said trader Jim.Meanwhile, analysts like Michaël van de Poppe see gold’s recent rally as a sign of prevailing caution.“We’re still seeing the risk-off mentality going into the Fed meeting...Bitcoin build-up is good...expecting to see ETH turn upwards after Wednesday,” he said.Another analyst, Crypto Seth, observed growing degen activity as the Bitcoin price forms a local bottom around $94,000.“Degens are building up positions anticipating a move. Market makers might just wick down and grab the longs before up... Bitcoin might be choppy before the FOMC,” he stated.The broader macro backdrop is equally murky. Analysts point to the unresolved US-China trade tensions and their impact on consumption, labor markets, and ultimately, political outcomes.“Uncertainty is now a liability for Trump, not a negotiation tool,” they argued.Despite the swirling fears, a breakout remains on the table. Bulls could get the green light if Jerome Powell strikes a more dovish tone or hints at cuts later this year. According to BitMEX co-founder and former CEO, Arthur Hayes, the Fed switching to quantitative easing (QE) could see Bitcoin price go parabolic.However, Bitcoin could revisit recent lows in a sharp unwind if the Fed doubles down on hawkishness. Ahead of the Wednesday FOMC meeting, the market is walking a tightrope, and all eyes are on Powell to decide which way it tips.Bitcoin (BTC) Price Performance. Source: BeInCryptoBeInCrypto data shows Bitcoin was trading for $94,474 as of this writing, down by 0.16% in the last 24 hours.The post Crypto Market Sentiment Tense as Bitcoin Braces for FOMC appeared first on BeInCrypto.
You may also like
Key Market Information Discrepancy on March 2nd - A Must-See! | Alpha Morning Report
1. Top News: Last Night's US-Iran Situation Recap, Iranian High-ranking Officials Killed, Over 200 Ships Stranded in the Strait of Hormuz
2. Token Unlock: $ENA
Iran Missile Strike in Dubai: Three Chinese Nationals Tell Their Story 48 Hours Later
The sound is still in the distance, so the days can still go on.
72 Minutes Before Attack, Six Mysterious Accounts Raked in $1.2 Million
These accounts were all registered in February, with most of them making their first deposit within 24 hours before the attack, and they have no other transaction history. Their behavior closely resembles insider trading.
How to Preserve Life and Wealth in Turbulent Times | Bill It Up Memo
In times of chaos, only through diversified allocation and keen observation can one preserve wealth and life in the face of great changes.
I have given up using OpenClaw
Instead of struggling with expensive and unstable AI assistants, it's better to use Claude to create a more stable, cost-effective, and understanding personal system.
WLFI is involved in insider dealings again? The banking license controversy under a $500 million investment
The UAE's investment in World Liberty Financial has intensified concerns about whether it receives special treatment and whether it involves national security issues.
Morning News | Iranian Supreme Leader Khamenei Assassinated; Kalshi to Refund Fees for "Will Khamenei Step Down" Related Market; Bitcoin Spot ETF Sees Net Inflow of $787 Million This Week
Overview of Important Market Events on March 1
The harvesting tactics of the quantitative giant Jane Street
Quantitative giant Jane Street has been accused of manipulating the liquidity and derivatives of markets such as the Indian stock market and Bitcoin, earning billions of dollars in the process.
Cryptocurrency ETF Weekly | Last week, the net inflow for Bitcoin spot ETFs in the U.S. was $787 million; the net inflow for Ethereum spot ETFs in the U.S. was $80.2 million
Top universities like Harvard have started to allocate to Bitcoin ETFs in their endowment funds.
WLFI at it Again? Banking License Controversy Amid $500M Investment
The UAE's investment in World Liberty Financial has heightened concerns over whether it received special treatment and whether national security issues are involved
The Aave civil war escalates, Morpho quietly doubles: Is the lending throne about to change hands?
Wall Street asset management giant Apollo Global Management invested $160 million in Morpho.
Dune Stablecoin Research: The Flow and Demand of a $300 Billion Market
In the dataset, transfers are no longer simply labeled as pure "transaction volume," but are classified as different on-chain activities. This is the difference between "just knowing that $100 trillion has been transferred" and "understanding why it was transferred."
Stripe Annual Letter: New cognitive density is extremely high, especially the 5-level model of "AI + Payments"
Every trend here is affecting everyone's future survival.
Sam Altman's Twenty-Four Hours: The Pentagon said "no" twice, but only one was serious
In Silicon Valley, Altman's sub-12-hour move has a name. It's not called backstabbing, it's called timing.
The US-Iran Conflict Spreads to the Crypto Space: What to Expect in the Market on Monday
The most important industry in the crypto world, only 300 kilometers away from the missile's impact point
Lily Liu, the chair of the Solana Foundation, shouted "Don't waste time on crypto," is the crypto industry really dead?
The interest of the younger generation is shifting from cryptocurrency to the field of artificial intelligence, which coincides with the current phenomenon in the cryptocurrency industry.
The little deer live by the water and grass
Mining companies have never been the most devout believers in Bitcoin. Under the pressures of halving compressing profits, financial reports showing revenue growth without profit increase, and coin prices falling below mining costs, the industry is collectively de-risking.
The world belongs to Chinese people who speak English
The world is vast, and only playing half of it is truly a loss.
Key Market Information Discrepancy on March 2nd - A Must-See! | Alpha Morning Report
1. Top News: Last Night's US-Iran Situation Recap, Iranian High-ranking Officials Killed, Over 200 Ships Stranded in the Strait of Hormuz
2. Token Unlock: $ENA
Iran Missile Strike in Dubai: Three Chinese Nationals Tell Their Story 48 Hours Later
The sound is still in the distance, so the days can still go on.
72 Minutes Before Attack, Six Mysterious Accounts Raked in $1.2 Million
These accounts were all registered in February, with most of them making their first deposit within 24 hours before the attack, and they have no other transaction history. Their behavior closely resembles insider trading.
How to Preserve Life and Wealth in Turbulent Times | Bill It Up Memo
In times of chaos, only through diversified allocation and keen observation can one preserve wealth and life in the face of great changes.
I have given up using OpenClaw
Instead of struggling with expensive and unstable AI assistants, it's better to use Claude to create a more stable, cost-effective, and understanding personal system.
WLFI is involved in insider dealings again? The banking license controversy under a $500 million investment
The UAE's investment in World Liberty Financial has intensified concerns about whether it receives special treatment and whether it involves national security issues.
App