Bitcoin Stares Down $95K as Markets Brace for Fed Rate Drama
BTC Liquidity Tightens Ahead of FOMC Decision as Traders Eye Next Big Move
As the weekend approached, Bitcoin (BTC) slipped toward $95,000, reversing gains from recent multimonth highs. The market, fueled by position flush-outs and mounting macro uncertainty, now looks to the Federal Reserve’s interest rate decision on May 7 as a possible turning point.
Liquidity Clusters Intensify Around $95K–$97K Range
Market data showed BTC/USD pulling back from the $97,000 region as the price collided with dense pockets of buy and sell orders. According to liquidity heatmaps from CoinGlass, significant long interest sits between $95,700 and $96,000, while short positions are stacked from $96,500 to $97,000, creating a zone of price friction that is attracting heavy trading activity.
“These are price magnets. Expect chop and volatility as they get tested,” noted trader TheKingfisher.
This liquidity cluster has created a classic setup for sudden price spikes or dips, with one trader describing the action as a “gap and tap”—a quick revisit of prior levels before any push higher, particularly toward the elusive $100,000 milestone.
Weekend Liquidations Rattle Traders
Over the weekend, positions between $94,000 and $97,000 were flushed, according to trader BitBull, contributing to increased market instability. Still, some analysts remain confident in the broader trend.
Crypto trader and analyst Michaël van de Poppe remarked that Bitcoin could withstand a further dip while still preserving momentum. His key marker: holding above the $91,500–$92,000 range.
“That validates for me the continuation towards a new ATH (all-time high),” he wrote.
Fed Meeting Looms Large Over Crypto Markets
With the Federal Open Market Committee (FOMC) set to meet on May 7, traders are increasingly cautious. Although recession risks and political pressure from Donald Trump have intensified the call for lower rates, CME Group data shows minimal probability of a rate cut this round.
Trump has already urged the Fed to lower rates three times in under a month, putting additional spotlight on Chair Jerome Powell’s decision.
Van de Poppe warned that crypto assets tend to correct ahead of Fed meetings, but expects the pressure to ease by midweek:
“I suspect that we’d be having the end of that correction around Tuesday and go up from there.”
What’s Next for Bitcoin?
With liquidity traps tightening, macro volatility rising, and sentiment hinging on the Fed’s next move, Bitcoin’s immediate future is precarious—but not without opportunity. If support holds and Fed signals tilt dovish, BTC’s march toward $100,000 may resume sooner than later.
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