Bitcoin moves to $98K after Fed’s 2025 rate-cut odds turn ‘pessimistic.

The following are key points.

• As macro-volatility triggers increase, Bitcoin and gold are trading in lockstep at low timeframes.

• Just a few hours remain until the Federal Reserve’s interest rate announcement and press conference.

• The FOMC Meeting is a time when the market sentiment towards rate reductions in 2025 drops sharply.

BitcoinBTCThe trend of risky assets changed abruptly on 7 May as a result of geopolitical factors.

Bitcoins traders look to Fed “tone changes”

Data from Cointelegraph Markets Pro You can also find out more about the following: TradingView BTC/USD made a sharp turnaround after dipping below $94,000, setting new May lows.

Wall Street’s trading session the previous day set a scene for today. return to strengthStocks ended the day lower, but remained higher than they started.

Prior to consolidating, bitcoin and gold hit local highs at $97.700 and $3.435, respectively.

Markets were lively after news that tensions could be boiling between India, Pakistan and the US, as well as possible progress towards a US, China trade deal. 

The reaction of the US and China trade negotiations is all that you need to understand.

Here, a lot is already included in the price. pic.twitter.com/jT6pKOdgiQ

— The Kobeissi Letter (@KobeissiLetter) May 7, 2025

The Federal Reserve rate decision is expected to be announced on Monday, May 7, and traders have no time for relaxation.

The market’s expectations of the Federal Open Market Committee meeting (FOMC) were almost unanimous. Cointelegraph reportedIt was the subsequent press conference by Fed chair Jerome Powell and his statement that drew more attention. 

“The market will be eager to watch for any dovish or hawkish changes in their tone, which has been pretty mixed recently,” popular trader Daan Crypto Trades summarized CME Group has been analyzing data in conjunction with X for a number of years. FedWatch Tool.

Keith Alan is the co-founder and founder of Trading Resource Material Indicators. said Nearby liquid had been “cleared out” Prior to the event

“Pleasantly surprised BTC held above the YOU, but won’t be surprised if price round trips the range before the end of the week,” X followers were told that the annual open level of $93,500 was a potential downside target.

“Clearly pessimistic”

Darkfost is a contributor of the onchain analytics platform CryptoQuant. He noted that there are declining odds for rate reductions to occur sooner than 2025.

Related: Bitcoin could rally regardless of what the Federal Reserve FOMC decides this week: Here’s why

At tHe time of writing, the June FOMC meeting had combined rate cut odds of around 30% — noticeably lower than in recent weeks.

“Expectations are clearly pessimistic for now,” he concluded. 

“If the Fed does decide to cut rates in this context, it will trigger volatility and might spark fear among investors (depending about how many Bps).”

This article contains no investment recommendations or advice. Risk is inherent in every investment decision and trade. The reader should always do research prior to making a final decision.