{"id":51924,"date":"2025-05-06T11:37:07","date_gmt":"2025-05-06T11:37:07","guid":{"rendered":"https:\/\/crowdfundjunction.com\/blog\/bitcoin-traders-brace-for-fomc-meeting-as-volatility-looms\/"},"modified":"2025-05-06T11:37:07","modified_gmt":"2025-05-06T11:37:07","slug":"bitcoin-traders-brace-for-fomc-meeting-as-volatility-looms","status":"publish","type":"post","link":"https:\/\/crowdfundjunction.com\/blog\/bitcoin-traders-brace-for-fomc-meeting-as-volatility-looms\/","title":{"rendered":"Bitcoin traders brace for FOMC meeting as volatility looms"},"content":{"rendered":"<p><b>(Originally posted on : CoinJournal: Latest Crypto News, Altcoin News and Cryptocurrency Comparison )<\/b><br \/>\n<\/p>\n<div data-site=\"CoinJournal\">\n<div class=\"-mt-16  mb-8  lg:-mt-20  rounded-md  shadow-md\">\n<div class=\"relative  z-10  post-article-image  rounded  overflow-hidden\" data-site=\"CoinJournal\">\n<picture><source srcset=\"https:\/\/coinjournal.net\/wp-content\/uploads\/imagecache\/2025\/05\/image-5-smartcrop-750x375.webp\" type=\"image\/webp\" media=\"(min-width: 750px)\"\/><source srcset=\"https:\/\/coinjournal.net\/wp-content\/uploads\/imagecache\/2025\/05\/image-5-smartcrop-363x181.webp\" type=\"image\/webp\"\/><source srcset=\"https:\/\/coinjournal.net\/wp-content\/uploads\/imagecache\/2025\/05\/image-5-smartcrop-750x375.png\" type=\"image\/jpeg\" media=\"(min-width: 750px)\"\/><source srcset=\"https:\/\/coinjournal.net\/wp-content\/uploads\/imagecache\/2025\/05\/image-5-smartcrop-363x181.png\" type=\"image\/jpeg\"\/>\n<\/picture>                            <\/div>\n<\/p><\/div>\n<ul>\n<li>FOMC expected to hold rates at 4.25%\u20134.50%, CME tool shows 95.6% odds.<\/li>\n<li>Swissblock flags $97K\u2013$98.5K as key resistance zone.<\/li>\n<li>Powell\u2019s comments could tilt Bitcoin towards breakout or correction.<\/li>\n<\/ul>\n<p>Bitcoin is trading just below $94,000 as investors prepare for Wednesday\u2019s Federal Open Market Committee (FOMC) meeting and Jerome Powell\u2019s post-meeting press conference.<\/p>\n<p><img loading=\"lazy\" fetchpriority=\"high\" decoding=\"async\" data-source=\"CoinJournal\" class=\"alignnone size-full wp-image-305041\" src=\"https:\/\/coinjournal.net\/wp-content\/uploads\/2025\/05\/Bitcoin.jpg\" alt=\"\" width=\"1507\" height=\"550\"\/><\/p>\n<p>Source: <a href=\"https:\/\/coinmarketcap.com\/currencies\/bitcoin\/\">CoinMarketCap<\/a><\/p>\n<p>The Fed is widely expected to keep its benchmark interest rate steady at 4.25%\u20134.50%, with CME FedWatch Tool data showing a 95.6% probability of a rate hold.<\/p>\n<p>Despite this consensus, traders are bracing for volatility triggered by Powell\u2019s comments on the economic outlook, inflation, and rate trajectory, which could sway risk sentiment across digital assets.<\/p>\n<p>Market participants are especially focused on forward guidance, as recent economic data and geopolitical tensions have clouded expectations for rate cuts later this year.<\/p>\n<h2 class=\"\" data-start=\"661\" data-end=\"720\">Trading volume dips, ETF inflows slow ahead of Fed event<\/h2>\n<p class=\"\" data-start=\"722\" data-end=\"1231\">Bitcoin\u2019s recent sideways movement reflects a cautious market mood.<\/p>\n<p class=\"\" data-start=\"722\" data-end=\"1231\">ETF inflows have cooled, and leverage appears to be winding down as traders await clarity.<\/p>\n<p class=\"\" data-start=\"722\" data-end=\"1231\">Analysts at Swissblock describe the environment as a \u201cbattle of resistance\u201d and note that high open interest and negative funding rates point to intensified bearish bets.<\/p>\n<p class=\"\" data-start=\"722\" data-end=\"1231\">They flag the $97,000\u2013$98,500 range as a critical resistance zone.<\/p>\n<p class=\"\" data-start=\"722\" data-end=\"1231\">A break above could trigger short liquidations, but a failed rally might trap bullish traders if momentum fades.<\/p>\n<p class=\"\" data-start=\"1233\" data-end=\"1565\">Liquidation data also supports this tension. As price hovers within a tight range, derivatives traders appear to be betting on a volatile move in either direction.<\/p>\n<p class=\"\" data-start=\"1233\" data-end=\"1565\">Risk appetite has cooled, but significant positioning remains open, suggesting market participants are preparing for a breakout or breakdown, depending on Powell\u2019s tone.<\/p>\n<h2 class=\"\" data-start=\"1567\" data-end=\"1620\">Powell\u2019s guidance could determine market direction<\/h2>\n<p class=\"\" data-start=\"1622\" data-end=\"2030\">While no change in rates is expected this week, traders are looking for hints on the Fed\u2019s stance for June and beyond.<\/p>\n<p class=\"\" data-start=\"1622\" data-end=\"2030\">In previous meetings, Powell\u2019s words have caused major swings in crypto markets.<\/p>\n<p class=\"\" data-start=\"1622\" data-end=\"2030\">December 2023 saw a hawkish turn that led to a broad sell-off in risk assets, and some fear that a repeat could materialise if Powell signals further tightening or ignores recent signs of economic slowdown.<\/p>\n<p class=\"\" data-start=\"2032\" data-end=\"2403\">Market sentiment has been dampened by soft GDP data and renewed trade tensions with China.<\/p>\n<p class=\"\" data-start=\"2032\" data-end=\"2403\">The impact of President Donald Trump\u2019s recent tariff rhetoric has raised concerns that rate cuts previously expected in June may now be delayed.<\/p>\n<p class=\"\" data-start=\"2032\" data-end=\"2403\">Veteran trader Mathew Dixon noted that expectations for a June cut have already flipped to a hold, further pressuring sentiment.<\/p>\n<p class=\"\" data-start=\"2405\" data-end=\"2585\">Gold\u2019s recent rally is also seen as a sign of risk-off positioning. According to analysts, this suggests investors are hedging against potential shocks from the Fed\u2019s announcement.<\/p>\n<h2 class=\"\" data-start=\"2587\" data-end=\"2634\">Bitcoin price action hinges on macro signals<\/h2>\n<p class=\"\" data-start=\"2636\" data-end=\"3073\">Bitcoin is currently consolidating near local support as traders weigh macroeconomic uncertainty.<\/p>\n<p class=\"\" data-start=\"2636\" data-end=\"3073\">Degens, or high-risk crypto traders, are reportedly building long positions, anticipating a price move.<\/p>\n<p class=\"\" data-start=\"2636\" data-end=\"3073\">However, some analysts warn that market makers may push prices lower to trigger stop losses before a potential upside.<\/p>\n<p class=\"\" data-start=\"2636\" data-end=\"3073\">Swissblock\u2019s analysis supports this view, suggesting that any breakout could be preceded by a final liquidity sweep.<\/p>\n<p class=\"\" data-start=\"3075\" data-end=\"3395\">Historical data offers mixed signals. Three of the last five FOMC announcements have coincided with Bitcoin rallies, but <a href=\"https:\/\/beincrypto.com\/bitcoin-fomc-decision-impact-crypto-market\/\">this week\u2019s event<\/a> is clouded by more complex macro conditions.<\/p>\n<p class=\"\" data-start=\"3075\" data-end=\"3395\">The unresolved US-China tensions, weaker consumer demand, and political pressure around inflation all weigh heavily on market sentiment.<\/p>\n<p class=\"\" data-start=\"3397\" data-end=\"3726\">BitMEX co-founder Arthur Hayes has previously argued that a shift back to quantitative easing could ignite a parabolic Bitcoin rally.<\/p>\n<p class=\"\" data-start=\"3397\" data-end=\"3726\">But in the absence of dovish signals, Bitcoin could retest recent lows in a sharp pullback.<\/p>\n<p class=\"\" data-start=\"3397\" data-end=\"3726\">With no clear catalyst either way, the market remains delicately balanced, awaiting Powell\u2019s next move.<\/p>\n<div class=\"post-meta\">\n<hr class=\"mb-6\"\/>\n<h6 class=\"text-3xl  mb-4  text-green-300\">Share this article<\/h6>\n<hr class=\"mb-6\"\/>\n<h6 class=\"text-3xl  mb-4  text-green-300\">Categories<\/h6>\n<hr class=\"mb-6\"\/>\n<h6 class=\"text-3xl  mb-4  text-green-300\">Tags<\/h6>\n<\/p><\/div>\n<\/p><\/div>\n<p><a href=\"https:\/\/coinjournal.net\/news\/bitcoin-traders-brace-for-fomc-meeting-as-volatility-looms\/\">Source link <\/a><br \/>\n<br \/><\/p>\n","protected":false},"excerpt":{"rendered":"<p>(Originally posted on : CoinJournal: Latest Crypto News, Altcoin News and Cryptocurrency Comparison ) FOMC expected to hold rates at 4.25%\u20134.50%, CME tool shows 95.6% odds. Swissblock flags $97K\u2013$98.5K as key resistance zone. Powell\u2019s comments could tilt Bitcoin towards breakout or correction. Bitcoin is trading just below $94,000 as investors prepare for Wednesday\u2019s Federal Open [&hellip;]<\/p>\n","protected":false},"author":3947362361,"featured_media":51925,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"om_disable_all_campaigns":false,"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0},"categories":[35],"tags":[],"_links":{"self":[{"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/posts\/51924"}],"collection":[{"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/users\/3947362361"}],"replies":[{"embeddable":true,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/comments?post=51924"}],"version-history":[{"count":0,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/posts\/51924\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/media\/51925"}],"wp:attachment":[{"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/media?parent=51924"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/categories?post=51924"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/tags?post=51924"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}