#BTCBreaks99K Bitcoin (BTC) rose above $99,000 for the first time in nearly three months after the U.S. Federal Reserve kept interest rates steady, ignoring public pressure from President Donald Trump to ease monetary policy.

The Federal Reserve maintains rates, citing inflation and unemployment risks

At the conclusion of the Open Market Committee meeting on May 7, Federal Reserve Chairman Jerome Powell announced that interest rates would remain in the range of 4.25%–4.50%. He cautioned that high risks for both inflation and unemployment remain, despite signs of economic resilience.

"Inflation has come down a lot, but it is still above our long-term target of 2%," Powell stated, adding that recent declines in sentiment among households and businesses were largely due to concerns related to Trump's aggressive trade policies.

Despite Trump's recent threat to fire Powell for being "too late" in cutting rates, the Federal Reserve emphasized caution, noting that the U.S. labor market is still "at or near maximum employment." Current forecasts expect the Federal Reserve's interest rate to drop to 3.6% by the end of the year.

Bitcoin volatility follows Federal Reserve decision

Shortly after Powell's remarks, Bitcoin briefly fell to $95,866 but quickly recovered - reaching $98,000 within hours and later climbing to $99,049 at the time of this report. This represents Bitcoin's highest level since February 21.

ETFs inflows and greed sentiment boost Bitcoin momentum

Bitcoin's recovery comes amid rising bullish sentiment. The crypto fear and greed index has returned to the 'Greed' zone, while spot Bitcoin ETFs have seen inflows of $4.41 billion since March 26, reflecting renewed institutional interest.

Analysts suggest that this move could mark the beginning of a new phase for Bitcoin. Historical patterns show that prolonged price stagnation is often followed by liquidity injections that tend to benefit scarce assets like Bitcoin.#BTC

What comes next?

Bitcoin's reaction to the Federal Reserve's pause highlights its role as a macro-sensitive asset. Analysts remain divided - some expect a new price surge if Bitcoin breaks $100,000, while others, like economist Timothy Peterson, warn that delaying rate cuts could lead to a market downturn, potentially pushing Bitcoin back toward $70,000.

However, as long as uncertainty about rates persists and ETF inflows continue, Bitcoin bulls appear to be firmly in control, according to Cointelegraph.