According to BlockBeats, on May 7, the Federal Reserve will announce its latest interest rate decision at 2 PM ET. The market generally expects it to maintain rates at 4.25%-4.50%, with a probability as high as 97.2%, but Powell's remarks after the meeting may become a key variable determining Bitcoin's short-term trend.
If the Federal Reserve remains inactive, Bitcoin may face short-term pullback pressure. The current market has partially digested this expectation, with technical analysis showing strong support for BTC around $95,000. A minor divergence needs to be corrected on the 4-hour chart, but the daily chart still holds above the MA7, maintaining a strong posture. If Powell signals a dovish stance (such as hinting at a rate cut in June), combined with expectations of potential liquidity injections from the U.S. Treasury, Bitcoin could break through the $97,000 resistance and aim for $100,000. In extreme cases, if an unexpected rate cut occurs, short positions amounting to $3 billion could face liquidation, triggering an epic short squeeze.
Meanwhile, the Bitcoin options market has seen a surge in open positions 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 both the number of active addresses and whale trading volume significantly increasing, indicating that large holders continue to accumulate.
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