Bitcoin bulls are making a bold play, diving into long positions just as the Federal Open Market Committee (FOMC) gears up for its interest rate decision today, May 7, 2025. With the cryptocurrency market in suspense, Bitcoin’s price holds firm around the $94,500 mark, reflecting an intriguing mix of anticipation and optimism.
Market Buzz: Bulls Gear Up
As the FOMC meeting looms, Bitcoin enthusiasts are not sitting idle. The action is heating up in the futures market, where a notable increase in long positions has been observed. Bitcoin analyst Axel Adler Jr. highlights a bullish cluster, with positions forming robustly around $94,400. This isn’t the first time such a pattern has emerged; a similar scenario last month saw prices surge to $97,500. This aligns with recent insights suggesting that Bitcoin price is about to ‘blast’ higher as Fed rate cut odds jump to 60%.
In the backdrop, a $189 million boost in Bitcoin futures open interest underscores this burgeoning bullish sentiment. The trading volume has also jumped by 15%, suggesting sustained buying interest even as prices wobble. According to Michaël van de Poppe, founder of VeloMN Capital, “I think we’ll continue the grind on Bitcoin upward.” He adds a caveat, noting that gold’s reaction post-FOMC could signal broader economic shifts.
Historical Context: Pre-FOMC Patterns
Swissblock, an investment management firm, has shed light on Bitcoin’s historical behavior ahead of FOMC meetings. The data reveals a consistent pattern—Bitcoin’s momentum tends to decelerate before such meetings, only to become volatile afterward. This trend, documented over the last five rate decisions, suggests that today’s announcement could be a significant trigger for price swings.
Bitcoin’s 25-day rate of change (ROC) offers further insight. When this metric trends upwards, Bitcoin’s price has historically followed suit, climbing steadily. This was the case in late 2024 and again as recently as April 2025. Swissblock’s analysis indicates that the ROC is currently on an uptrend, potentially paving the way for another price rally.
The Fed’s Role: A Catalyst for Volatility?
With the FOMC’s decision imminent, all eyes are on Federal Reserve Chair Jerome Powell. His tone and the committee’s stance on interest rates could spark volatility in not just Bitcoin but the broader financial markets. The aggregated funding rate remains near neutral, signaling a balanced sentiment between long and short positions. However, recent fluctuations, including a spike to 0.018% on May 6, hint at pockets of trader optimism.
Bitcoin enthusiasts remain cautiously optimistic, aware of the potential for rapid price movements. While the market awaits clarity from the Fed, the underlying bullish sentiment is palpable. As Adler Jr. noted, “The market’s resilience around $94,500 is a testament to the bulls’ confidence.” This sentiment is echoed in the recent surge past $94,000, driven by institutional interest and market optimism.
What’s Next for Bitcoin?
While today’s FOMC decision could set the stage for Bitcoin’s next big move, the future remains uncertain. Will BTC continue its upward trajectory, or will the market face new challenges post-announcement? Such questions linger, inviting speculation and strategic positioning.
For now, Bitcoin bulls are holding their ground, undeterred by impending volatility. As the crypto world watches the Fed, the anticipation is electrifying—a testament to the ever-evolving dance between traditional finance and digital currency. The coming days will reveal whether today’s bullish maneuvers pay off or if the market has another twist in store.
Source
This article is based on: Bitcoin bulls rush into long positions ahead of May 7 Fed FOMC interest rate decision
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Steve Gregory is a lawyer in the United States who specializes in licensing for cryptocurrency companies and products. Steve began his career as an attorney in 2015 but made the switch to working in cryptocurrency full time shortly after joining the original team at Gemini Trust Company, an early cryptocurrency exchange based in New York City. Steve then joined CEX.io and was able to launch their regulated US-based cryptocurrency. Steve then went on to become the CEO at currency.com when he ran for four years and was able to lead currency.com to being fully acquired in 2025.
