As the cryptocurrency market continues to evolve, Bitcoin (BTC) bulls are currently holding strong around the $94,500 mark in anticipation of the Federal Open Market Committee (FOMC) meeting scheduled for May 7. Recent data indicates a bullish sentiment with increased margin long positions emerging around $94,400.
Key Insights:
- Bitcoin bulls are actively opening long positions as trading volume increases by 15%.
- An impressive rise of $189 million in Bitcoin futures open interest reflects sustained buying interest amidst recent price fluctuations.
- Historically, Bitcoin show a slowdown in momentum before FOMC meetings, often leading to increased volatility post-announcement.
Recent analysis from Bitcoin analyst Axel Adler Jr. highlights BTC’s resilience, pointing to a significant cluster of long positions forming meticulously around the $94,400 threshold. This movement echoes similar trends observed at the end of April when BTC price surged to $97,500.
The futures market also saw a rapid escalation in open interest of approximately 2,000 BTC, translating to around $189 million in just a few hours. This uptick, combined with the 15% surge in overall trading volume, underscores a robust buying sentiment despite recent price dips.
Notably, the aggregated funding rate has recently stabilized around a neutral territory, indicating a balanced market sentiment with fluctuations pointing towards the optimism of leveraged traders as funding rates spiked to 0.018% on May 6.
Market analysts, including Michaël van de Poppe of MN Capital, indicate potential for continued upward momentum in BTC, suggesting that market behavior post-FOMC could influence broader trends, particularly in relation to Gold’s performance after the meeting.
“I believe Bitcoin will continue to climb, particularly depending on Gold’s correction following the FOMC meeting tomorrow, which could indicate the onset of a new business cycle,” van de Poppe noted.
Bitcoin Momentum Pre-FOMC Meeting
Swissblock, an investment management firm, presented an examination showcasing that Bitcoin’s momentum typically decelerates ahead of interest rate decisions, followed by heightened price volatility. Their latest analysis depicted a chart detailing Bitcoin’s 25-day Rate of Change (ROC) from October 2024 to May 2025.
Historically, an upward trend in Bitcoin’s ROC correlates with price increases, as observed during the latter parts of 2024 and recently in April 2025. Conversely, a tapering ROC often precedes correction periods, as evidenced from January to February 2025. Current insights suggest the ROC retains an upward trajectory in May 2025, hinting at a favorable outcome for Bitcoin prices.
Swissblock stresses the importance of the FOMC meeting as a critical catalyst for Bitcoin’s next significant movement, emphasizing that both rate decisions and Federal Reserve Chair Jerome Powell’s communication will play pivotal roles in instigating market volatility.
This article does not constitute investment advice. All trading endeavors entail risks, and readers are encouraged to perform their research prior to making investment decisions.
