Bitcoin Drops Under $95K Amid Market Jitters Ahead of Rate Policy Announcement

Bitcoin saw a 1.24% decline over the past day, falling to near $94,000 as market participants position themselves ahead of the Federal Reserve’s interest rate announcement—an event widely expected to set the tone for near-term risk sentiment.

Broader markets aren’t faring much better:

• U.S. stocks are trending down,
• and Brent crude has dropped over 2%, landing near $57. 

Gold stands out as the exception—rising as a classic safe-haven play in a jittery macro environment.

Friday marked a sharp uptick for U.S. spot Bitcoin ETFs, which registered a net inflow of $674.9 million. BlackRock’s IBIT was the sole contributor to that figure, maintaining its lead in the segment as rival funds reported no activity.

Total weekly inflows into Bitcoin ETFs now amount to $1.8 billion—adding to a broader trend of steady institutional allocation.

Retail sentiment’s shifting gears:

• Fear & Greed Index: down to 49 (neutral),
• Bitcoin dominance: up at 63.7%,
• Altseason Index: popped to 25 — alts showing early signs of life.

Bitcoin Slips Below $95K, Searching for Solid Ground

After brushing $98,000, Bitcoin has once again dipped below $95,000—slipping through a support zone that once held.

Notably, the pullback wasn’t accompanied by mass liquidations: $211 million in total over the day, with $168 million in long positions unwound.

Technicians point to $92,000 as the next key level. Holding that line keeps the broader uptrend intact. A quick return to $95,000 would restore momentum.

In the words of well-known trader EliZ, Bitcoin’s chart is steeped in uncertainty—a reflection of the broader market’s indecision. He points to the daily close on May 5, 2025, as a defining moment for near-term outlooks. Resistance looms at $98,000, while $88,000 marks the lower boundary traders cannot afford to see breached.

All Eyes on the Fed

The recent tremors in Bitcoin’s price chart trace back to a familiar source: the Federal Reserve. With a rate decision looming this week, the market holds its breath.

At present, the federal funds rate stands between 4.25% and 4.5%. Yet hope for relief is slim—CME Group’s FedWatch places the likelihood of a cut at just 2.1%, echoing the market’s tempered expectations.

A rate cut would breathe new life into Bitcoin and risk-on markets, easing the cost of capital and unlocking liquidity for major players.

But that upside hinges on inflation remaining subdued. If consumer prices surge again, the same easing could flood the system and undermine the dollar’s purchasing power.

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Simmering beneath the market narrative is a deeper political rift: Fed Chair Jerome Powell continues to face public pressure from President Donald Trump, who has long called for immediate rate cuts—or Powell’s ouster altogether.

Yet Powell has stayed the course, reiterating that the central bank’s independence rests on its commitment to data-driven decisions.

As Michaël van de Poppe, founder of MN Fund, points out, the crypto market has a familiar rhythm: a wave of caution just before the Fed speaks, followed—often swiftly—by a rebound once uncertainty lifts.

It’s a view mirrored across much of the analyst community, many of whom anticipate a quick recovery for Bitcoin and digital assets in the wake of the official rate decision.