Bitcoin’s price holds above $96K as traders bet on upside momentum following the Federal Reserve’s May 7 interest rate decision.
BTC Futures Data Shows $189M in Bullish Positioning Ahead of FOMC
Bitcoin (BTC) price surged back above $96,000 as traders aggressively opened margin long positions ahead of the U.S. Federal Reserve’s FOMC rate announcement. On May 7, the Fed held interest rates steady at 4.25%–4.50%, as widely expected, but hinted at growing risks of both unemployment and inflation — signaling potential market turbulence ahead.
Data from the futures market shows that BTC bulls opened long positions from the $94,400 level, creating a cluster of buy interest that mirrors the one seen in late April — which propelled Bitcoin to a local high of $97,500.
Open Interest and Volume Spike as Bulls Take Control
Over the past 24 hours, Bitcoin futures open interest (OI) jumped by 2,000 BTC — approximately $189 million — alongside a 15% increase in aggregated trading volume. This suggests sustained buying pressure, even as Bitcoin consolidates below its $100K psychological resistance.
Meanwhile, funding rates have stayed neutral, showing balance between longs and shorts, though short bursts of bullish sentiment were seen — such as a funding rate spike to 0.018% on May 6.
Crypto analyst Axel Adler Jr. emphasized the bullish formation of leveraged long positions near $94,400. Similarly, MN Capital’s Michaël van de Poppe noted Bitcoin’s resilience and stated:
“We’ll likely continue grinding upward. The key factor now is how gold and other macro assets react post-FOMC. That could hint at the next business cycle phase.”
Bitcoin Momentum Pattern Suggests Volatility Ahead
Investment firm Swissblock revealed that Bitcoin momentum tends to stall before FOMC meetings, followed by sharp volatility after the rate decision. Analyzing Bitcoin’s 25-day Rate of Change (ROC) from October 2024 to May 2025, the firm highlighted that positive ROC trends generally align with bullish price moves.
Notable rallies occurred in October–November 2024 and April 2025 — periods when ROC turned upward. In contrast, corrections were seen in January–February 2025 when ROC declined. As of May 2025, the ROC remains in bullish territory, suggesting momentum remains favorable for a potential push toward $100,000.
Market Outlook Post-FOMC
With Federal Reserve Chair Jerome Powell signaling caution about the economic outlook and no immediate path to rate cuts, markets remain in a wait-and-see mode. However, signs of liquidity injection via Treasury operations and a weakening U.S. dollar have supported Bitcoin’s narrative as a hedge against monetary policy uncertainty.
Bitcoin’s reaction to the Fed pause — combined with long positioning and technical momentum — could pave the way for renewed bullish momentum if key resistance levels around $97,500 to $99,000 are cleared, according to Cointelegraph.
