Main notes
- Bitcoin price rose to $ 97771 before the Federal Reserve Policy decision.
- The Federal Reserve is expected to keep the remaining 3.5 % inflation.
- Jerome Powell’s tone is likely to affect the BTC direction in the short term.
The price of the largest encrypted currency, Bitcoin, hovering near the main resistance levels where global markets await the interest rate of the United States, expected later today. With the growth of economic uncertainty and inflation is still a source of concern, merchants are on the edge of the abyss.
All eyes are on the upcoming Jerome Powell feeding chair, which may affect Bitcoin’s direction in the coming weeks.
Investors are preparing for Powell’s statements with bitcoin climbing
Bitcoin rose to 96,921.96 dollars on May 7, as it approached the main threshold of $ 100,000. These merchants come at a time when merchants put themselves before the FOOC Open Market Committee announced.
While the market is widely expected the Federal Reserve will retain interest rates by 4.33 %, attention has turned into the tone and details of the Powell Powell Police Conference. EST.
It should be noted that during the past few months, Bitcoin’s reaction has been increasingly on total economy data and central bank signals, especially after approval of the boxes circulating on the stock exchange.
Institutional interests increased, which led to the tightening of bitcoin with the traditional financial markets. As a result, monetary policy updates now bear more bitcoin than ever.
The US economy decreased during the first quarter of 2025, indicating signs of weakness after the strongest completion until 2024. The real GDP decreased by 0.3 %, and consumer spending slowed sharply.
At the same time, inflation remained fixed. The basic personal consumption price index (PCE), a measure of the main inflation of the Federal Reserve, increased to 3.5 %, much higher than the central bank’s goal by 2 %.
These numbers put the federal reserve in a difficult place. While slowing growth usually provokes price reduction, high inflation and new commercial tariffs make it difficult for the central bank to shift towards an easier policy. According to CNBC, most economists believe that the Federal Reserve will eventually need to reduce prices. However, at the present time, polymarkket data indicates a 2 % chance to reduce today’s average.
Bitcoin faces the main levels while traders monitor evidence
The next step for Bitcoin may depend completely on the Powell tone. If the Federal Reserve recognizes economic weakness and indicates ready to reduce policy later in the year, Bitcoin may abandon the $ 98,000 resistance and test at all. Some analysts believe that it may exceed $ 100,000 if the directions of Dovish and ETF flows are aligned.
However, a more honest position focuses on the risk of inflation can lead to a decrease. Support currently appears at 92,000 dollars to $ 94,000, with another possible possibility if traders are sold for disappointment. A neutral or mysterious statement can also cause price fluctuations, especially given the typical insomnia liquidity around the federal reserve events.
Meanwhile, the long Bitcoin governorates since 2013 recently transferred $ 325 million from BTC before the imminent interest rate of the Federal Reserve.
Currently, merchants remain cautious. With Bitcoin at a critical turn and federal reserve decision only hours, the market is preparing to increase volatility.
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Slip: Coinspeaker is committed to providing unbiased and transparent reports. This article aims to provide accurate and timely information, but it should not be considered financial or investment advice. Since market conditions can change quickly, we encourage you to check your information and consult with a professional before making any decisions based on this content.
Benjamin Jodfrey is a blockchain lover and journalist who enjoys writing about the real life applications of Blockchain technology and innovations to pay public acceptance and complementarity all over the world for emerging technology. His desire to educate people about encrypted currencies inspire his contributions to the media and famous sites in Blockchain.
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