Bitcoin advocates maintain their momentum, pushing towards multi-month highs amid rising volatility. The Federal Reserve is expected to provide insights into its interest rate policy soon. On May 7, Bitcoin experienced a brief trend shift due to geopolitical factors, introducing new volatility in risk assets.”
Bitcoin traders eye Fed for “tone changes”
Data from Cointelegraph Markets Pro and TradingView revealed a sudden reversal for BTC/USD after the pair dropped below $94,000, marking new lows for May. The previous day’s trading on Wall Street set the stage for a rebound, despite stocks closing lower.
Bitcoin and gold peaked at local highs of $97,700 and $3,435, respectively, before consolidating. Rising tensions between India and Pakistan, along with possible advancements in a US-China trade deal, kept market activity vibrant.
Analyzing Bitcoin’s order book, Keith Alan, co-founder of Material Indicators, noted that nearby liquidity had been “cleared out” ahead of the event. He expressed optimism that BTC held above the yearly open level of $93,500 but indicated he wouldn’t be surprised if the price retraced before the week ends.”
BTC/USDT order book data. Source: Keith Alan/X
“Clearly pessimistic”
Darkfost, a contributor to the on-chain analytics platform CryptoQuant, pointed out the decreasing likelihood of rate cuts occurring sooner in 2025. As of now, the odds for rate cuts at the June FOMC meeting stand at approximately 30%, significantly lower than in previous weeks.
“Expectations are clearly pessimistic at this point,” he stated. “If the Fed chooses to cut rates under these circumstances, it could lead to volatility and potentially instill fear among investors, depending on the number of basis points.””
Fed target rate probability comparison for June 18 FOMC meeting. Source: CME Group
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Source: Cointelegraph Edited by: Bernie