As the cryptocurrency market braces for volatility, all eyes are now fixed on the U.S. Federal Reserve’s upcoming policy decision. The Federal Open Market Committee (FOMC) is set to meet on May 6–7, and its conclusions will shape the market’s short-term future. At 2 PM Eastern Time on May 7, Chair Jerome Powell will reveal the Fed’s stance on interest rates, leaving traders and investors eagerly anticipating the outcome.
Anticipated Interest Rate Cuts and Economic Outlook
Originally, there were expectations that the Fed might announce a significant one-percentage-point rate cut in response to concerns surrounding Trump-era tariffs. However, recent reports suggest a more conservative approach, with analysts now forecasting a 0.75% rate cut for the year. Powell has reiterated the need to wait for clearer signals regarding the tariffs before making any final decisions. Adding to the complexity, Treasury Secretary Scott Bessent is set to meet Chinese officials to discuss potential changes to trade policies, which could further influence the Fed’s moves.
Also Read: All Eyes on Jerome Powell: Will Today’s FOMC Speech Ignite Bitcoin’s Next Big Move?
Bitcoin’s Recovery and Altcoin Market Surge
The ongoing trade discussions between the U.S. and China have already started to fuel a positive shift in the crypto market. Bitcoin, in particular, has surged back, reaching around $97,000. Many altcoins are also showing signs of recovery as traders prepare for potential positive news from the Fed. Bitcoin’s dominance remains high, currently above 65%, but a shift may soon occur as altcoins begin to gain traction. This could signal the start of an altcoin season, offering opportunities for those watching the market closely.
Bitcoin Price Outlook: Resistance and Support Levels
Bitcoin’s price action has shown promising signs of recovery, with the cryptocurrency nearing a crucial resistance zone between $96,100 and $97,400. To maintain its upward momentum, Bitcoin needs to hold above $95,300. If this support level holds, it could pave the way for a continued bullish trend. However, traders remain cautious, as a pullback could still occur, and the next few days will be critical in determining whether Bitcoin’s recovery is a short-term bounce or the beginning of a more sustained rally.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
I’m a crypto enthusiast with a background in finance. I’m fascinated by the potential of crypto to disrupt traditional financial systems. I’m always on the lookout for new and innovative projects in the space. I believe that crypto has the potential to create a more equitable and inclusive financial system.
