- Bitcoin support at $94K signals strong accumulation and market confidence.
- Fed policy reflects inflation concerns despite current economic strength indicators.
The Federal Reserve has decided to keep interest rates unchanged, signaling concerns over inflation and job market risks. At the same time, Bitcoin has crossed the $100K mark, driven by renewed retail interest and strong support levels.
Source: Coinmarketcap
Bitcoin’s price climbed to $101,150.49 at press time, recording a 4.7% gain in the past 24 hours. This marks its first return above $100K since February 3. Traders are now closely watching key resistance and support thresholds as sentiment grows more bullish.
Fed Maintains Cautious Policy as Economic Uncertainty Grows
On May 7, 2025, the Federal Reserve confirmed it would keep the target federal funds rate between 4.25% and 4.50%. The decision reflects ongoing concerns about persistent inflation and its impact on the labor market.
According to the Fed’s press release statement, inflation and unemployment risks have risen while the economy remains strong. Policymakers emphasized that future rate hikes would depend on incoming data and risk assessments.
The Fed also announced plans to continue reducing its balance sheet by trimming holdings of Treasury and mortgage-backed securities. Officials stressed the importance of striking a balance between price stability and employment.
These comments came amid uncertainty about the Trump administration’s trade policy outcomes. Analysts are now assessing how the Fed’s cautious stance may affect risk assets, including cryptocurrencies.
Bitcoin Surges Past $100K with Strong Support and Resistance Zones
According to Glassnode, BTC has established a strong support level at $94,719, where 195,320 BTC have been accumulated. This accumulation points to bullish conviction among holders at that price.
Source: Glassnode
Resistance sits near $101,673, with 81,910 BTC previously acquired at this range. Analysts note that this threshold poses a key challenge for further gains.
Bitcoin’s ability to stay above its support level could strengthen its position to test and possibly break the resistance barrier. The market is closely watching how prices behave around these zones, which are actively being tested amid rising volume and trading activity.
Additionally, Data from Santiment indicates rising optimism in Bitcoin markets, with retail sentiment turning sharply bullish. The platform reported a surge in social media mentions calling for higher prices. This pattern follows a familiar trend: fear-driven price spikes followed by euphoric calls for continued growth.
Source: Santiment
A notable increase in crowd enthusiasm was observed on May 5, helping push Bitcoin higher. A similar effect occurred on May 8, as fear gave way to optimism.
While this sentiment supports momentum, analysts caution that excessive bullishness can sometimes lead to stagnation or short-term pullbacks. Bitcoin may face selling pressure if sentiment shifts quickly before mounting a new rally.
