Bitcoin Surges 2% to $97,000 Ahead of FOMC Meeting

Bitcoin's price surged above $97,000 on Tuesday night, sparking speculation about whether it could reach the $100,000 milestone before the Federal Open Market Committee (FOMC) meeting scheduled for May 7. This surge comes amidst a backdrop of significant market movements and investor sentiment shifts.

The cryptocurrency market has seen a notable correction, with the total market capitalization dropping to $2.95 trillion, a decrease of 0.8% in the last 24 hours and 1% over the past week. This pullback is seen as short-term profit-taking following a two-week rally. Bitcoin itself has retreated below $95,000 after briefly surpassing $98,000 last Friday. The price is now testing the resistance level that previously served as strong support from December to February.

Analysts are closely monitoring the $92,500 and $89,000 levels as potential correction targets. A decline below $90,000 could trigger further selling, as it would breach the psychologically important round level and the 200-day moving average. Despite these fluctuations, significant inflows into spot Bitcoin exchange-traded funds (ETFs) in the US continue, with weekly net inflows totaling $1.81 billion, following $3.06 billion the previous week. This brings the all-time total to $40.24 billion, indicating sustained institutional interest.

Fidelity has noted that Bitcoin has transitioned from the ‘belief and denial’ phase to the ‘optimism and anxiety’ phase. The asset's fundamental metrics remain robust, despite its decline from the year's highs. However, Glassnode has warned of potential sell-off risks as Bitcoin approaches $100,000. The cumulative unrealized gains of long-term investors have reached 350%, a level historically associated with stronger selling pressure.

Ask Aime: Can Bitcoin reach $100,000 before the FOMC meeting?

The market's sentiment is neutral with a slight positive bias, as indicated by the fear and greed index at 52. This suggests that while there is some caution, the overall outlook remains optimistic. The rise in Bitcoin's price has been fueled by various factors, including significant inflows into spot Bitcoin ETFs and the anticipation of the FOMC meeting. The FOMC announcement is expected to provide further clarity on monetary policy, which could influence Bitcoin's trajectory in the coming days.

As the market awaits the FOMC decision, the question remains whether Bitcoin can sustain its momentum and break the $100,000 barrier. The upcoming meeting will be a critical event, as it could either validate the current bullish sentiment or trigger a correction. Investors and analysts alike are closely watching these developments, as the outcome could have significant implications for the cryptocurrency market.

Bitcoin is showing signs of recovery and the price is now approaching a resistance zone, between $96,100 and $97,400. If Bitcoin can hold above $95,300, the upward trend could continue, possibly forming a stronger move higher. So far, the current bounce is looking good, but it’s too early to confirm a full trend reversal. A pullback could still happen, and how the price reacts next will help confirm whether this recovery continues or if more downside is coming.

As the US and China are looking to ease the ongoing trade tensions, Bitcoin has already started climbing again, reaching around $97,000, and many altcoins are turning green as traders prepare for possible positive news. Although Bitcoin dominance remains high—now above 65%, this could shift soon, opening the door for altcoin season.