#TradeStories
**Bitcoin Latest Update (May 7, 2025)**
### **Price Surge to $97K+**
Bitcoin (BTC) surged to **$97,388** on May 6, driven by anticipation of the Federal Reserve’s interest rate decision and progress in U.S.-China trade talks. As of May 7, BTC is consolidating near **$97,500**, with analysts eyeing the critical **$100,000** psychological resistance level .
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### **Key Drivers Behind the Rally**
1. **Federal Reserve Policy Decision (May 7):**
- Traders expect a dovish stance from the Fed, potentially signaling future rate cuts. This has fueled institutional inflows, with U.S.-based Bitcoin ETFs recording **$420 million in 24-hour inflows** (led by BlackRock’s $529.5M inflow). A dovish Fed could propel BTC past $100K .
2. **U.S.-China Trade Talks:
- Renewed negotiations between the U.S. and China (set for Switzerland this week) reduced global economic uncertainty. Bitcoin rose **~3%** following the news, alongside gains in Nasdaq and S&P 500 futures .
3. **Institutional and Government Adoption:**
- New Hampshire became the first U.S. state to allow government Bitcoin investments. Meanwhile, BlackRock reportedly acquired **$2.5B in BTC** over the past week, averaging $500M daily .
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### **Technical and Market Sentiment
- **Resistance Levels:** $98,500 (near-term) and $100,000 (key psychological barrier) .
- **Support Zones:** $94,000 and $92,500. A breakdown below $90,561 could signal a deeper correction .
- **BTC Dominance:** Hit **55.3%, a 4-year high, indicating capital rotation from altcoins to Bitcoin amid macro uncertainty .
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### **Risks and Outlook**
- **Volatility Warning:** The Fed’s announcement and trade talks could trigger sharp price swings. Analysts advise caution, though on-chain metrics and futures open interest ($189M rise) suggest bullish momentum .
- **Long-Term Cycle: Bitcoin’s 4-year growth pattern and post-halving supply squeeze (April 2024) hint at a potential 2025 breakout, with targets like 134,000* if bullish trends persist .
