Bitcoin’s recent stumble below $95,000 has traders on edge, eyeing a potential slide to $90,000 or lower amid mounting macroeconomic uncertainties. On May 6, 2025, the cryptocurrency market turned its gaze to the Federal Reserve’s upcoming policy meeting, as analysts warn of significant technical and macro risks that could further weigh on Bitcoin’s price.
Market Jitters and Technical Hurdles
After a robust two-week rally, Bitcoin briefly soared past $98,000, attracting fresh retail and institutional interest. However, it now finds itself in a precarious position. “We’re back at a key resistance zone that acted as support from December to February,” commented Alex Kuptsikevich of FxPro. He outlined potential downside targets of $92,500 and $89,000, cautioning that a drop below $90,000 could breach the 200-day moving average, a psychological and technical blow to the market. This sentiment echoes concerns raised in Bitcoin Surpasses $95K Amid Resilient U.S. Stocks, Analysts Voice Concerns Over Market Perception, where analysts highlighted market perception challenges.
The market’s focus is now split between domestic monetary policy and international trade tensions, specifically the ongoing U.S.-China tariff talks. Traders are keenly awaiting the Federal Reserve’s decision this Wednesday. While the Fed is anticipated to maintain current interest rates, market participants are eager for insights into future policy directions amidst easing inflation pressures, as noted by the recent PCE data.
The Fed, Tariffs, and Market Sentiment
In a note circulated on Monday, QCP Capital highlighted the intricate interplay between economic data and geopolitical developments. “Solid data and hopes of easing trade tensions helped markets rebound from the post-Liberation Day selloff,” the Singapore-based firm explained. Yet, with the earnings season drawing to a close, all eyes are on the Fed and U.S.-China trade dynamics. The looming question remains whether the Fed will resist political pressures to cut rates or signal a shift in monetary policy. This aligns with insights from Crypto Daybook Americas: All Eyes on Jobs, Fed as Bitcoin Prepares for Breakout Rally, which discusses the broader economic factors influencing Bitcoin’s potential rally.
Despite the current pullback, interest in Bitcoin remains steadfast. Spot bitcoin ETFs have continued to see inflows, with last week’s net inflows reaching $1.81 billion, according to SoSoValue. However, on-chain metrics suggest caution. Glassnode has flagged that the cumulative unrealized gains for long-term holders have surged to nearly 350%, a level historically associated with significant profit-taking.
Meme Coins and Market Dynamics
The cryptocurrency landscape is never static. Santiment data reveals that meme coin discussions have peaked in 2025, indicating a potential shift back to riskier bets following a period dominated by major cryptocurrencies and ETFs. Yet, not all meme coins are reaping the rewards. GORK, a memecoin linked to an AI chatbot parody, saw its momentum fizzle despite being thrust into the spotlight by none other than Elon Musk. This suggests a possible waning of celebrity-driven market pumps.
The road ahead is anything but clear-cut. A complex web of technical levels, macroeconomic factors, and shifting investor sentiment continues to weave its influence on Bitcoin’s trajectory. As the Federal Reserve meeting looms large, traders remain poised for whatever signals emerge, mindful that any slight deviation in policy or geopolitical developments could ripple across the crypto markets.
What does this all mean for Bitcoin’s future? The market finds itself at a crossroads, grappling with a blend of bullish optimism and bearish caution. As always, the cryptocurrency landscape remains a place where fortunes can shift with the wind, and where every new development—be it a Fed decision or a meme coin surge—holds the potential to reshape the market’s narrative.
Source
This article is based on: Bitcoin Could Slide to $90K as BTC Traders Eye Fed Meeting
Further Reading
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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.
