BiyaPay analyst: The Fed’s interest rate decision tonight will set off the crypto market, and the decisive battle for Bitcoin’s $100,000 life and death line is imminent

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Blockbeats
2 days ago
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On May 7th, the Federal Reserve will announce its latest interest rate decision at 2 PM Eastern Time, with the market widely expecting to maintain the interest rate at 4.25%-4.50%, with a probability of 97.2%. However, Powell's post-meeting statement may become a key variable determining Bitcoin's short-term trend. This resolution comes at a time when the US economy faces multiple challenges: Q1 2025 GDP contracted by 0.3% quarter-on-quarter, consumer confidence index dropped to a 13-year low, and Trump's tariff policies have exacerbated inflation and growth uncertainties.

If the Federal Reserve remains inactive, Bitcoin may face short-term correction pressure. The current market has partially digested this expectation, with technical analysis showing strong support for BTC around $95,000. The 4-hour level needs to repair a slight divergence, but the daily line remains stable above MA7, maintaining a strong posture. If Powell releases dovish signals (such as hinting at a June rate cut), coupled with potential liquidity injection expectations from the US Treasury, Bitcoin may break through the $97,000 resistance and launch an assault towards $100,000. In an extreme scenario, an unexpected rate cut could cause a $3 billion short contract liquidation, triggering an epic short squeeze.

Institutional trends show intense bull-bear confrontation: BlackRock's IBIT ETF added over 6,954 BTC in a single day, with total holdings reaching 597,000 BTC, accounting for 2.38% of circulating supply. Meanwhile, the Bitcoin options market saw a surge in open interest for $300,000 call options, betting on price breakthroughs. On-chain data further supports the bullish logic, with the MVRV indicator returning to a healthy range, and significant increases in active addresses and whale transaction volumes, indicating continued accumulation by large holders.

Currently, Bitcoin price hovers around $96,400, just a step away from the $100,000 mark. The market closely watches the Federal Reserve's stance on "stagflation" risks and progress in China-US trade talks, with any policy shifts or geopolitical easing signals potentially becoming the fuse to ignite the market. Tonight, the battle between bulls and bears is imminent!

BiyaPay, as the world's first multi-asset trading wallet, demonstrates unique value, having now opened instant exchanges for 30 fiat currencies and 200 digital currencies. Users can exchange USDT 1:1 for USD to directly participate in US/Hong Kong stock markets, with zero transaction fees for digital currencies, spot/contract Maker.

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Disclaimer: The content above is only the author's opinion which does not represent any position of Followin, and is not intended as, and shall not be understood or construed as, investment advice from Followin.
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