Bitcoin Slides Amid Fed Rate Anxiety and Trade Talks With China

Bitcoin has declined by 0.47% in the last 24 hours under pressure from two looming macro risks:

• the forthcoming Federal Reserve meeting, where policymakers are set to announce their stance on interest rates,
• and unresolved trade discussions between the United States and China.

Bitcoin continues to mirror U.S. equity sentiment in the current macro environment:

• Yesterday: a 0.64% decline,
• Today: S&P 500 futures down 0.74%.

Meanwhile, gold and oil have staged a strong intraday recovery, climbing 2.84% and 1.87% respectively—reversing losses from yesterday’s risk-off session.

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BlackRock’s iShares Bitcoin Trust ETF (IBIT) continues to lead the pack, recording a solo net inflow of $531.2 million while peer ETFs reported zero or negative flows.

Despite mixed results across the board, cumulative net inflows reached $425.5 million—driven entirely by IBIT’s dominance.

• The Fear & Greed Index holds neutral at 50,
• Bitcoin's dominance nears 64% as altcoins continue to retreat,
• The Altseason Index sits at 22—firmly within Bitcoin season).

Bitcoin in a Holding Pattern with Buyers in Control

Despite several dips below $94,000 overnight, Bitcoin remains resilient within its established range of $92,000 to $95,000. None of the bearish attempts held ground, a sign that demand remains strong just beneath the surface.

Liquidations in the last 24 hours totaled $163.8 million, with $112.8 million coming from long positions—highlighting a sharp positioning reset among bullish traders.

Some analysts argue that this downturn is merely a short-term correction before a possible recovery, rather than a sustained decline.

May 7 could mark a symbolic trigger for the markets, as the Federal Reserve prepares to announce its next move on rates.

Most investors expect the Fed to keep rates unchanged—and in today’s environment, even that outcome would be viewed positively, without fueling unrealistic hopes of an imminent dovish pivot.

88% of Bitcoin Addresses Still Show Profits

While Bitcoin’s price has slipped, on-chain metrics tell a different story: more than 88% of BTC holdings are still in the green.

According to Glassnode, similar profitability levels in the past have often coincided with market bottoms—suggesting that buyers may be quietly preparing for the next move upward.

BTC Realized Profit/Loss Ratio has moved back above 1.0, signaling a shift toward profit-taking. This rebound reflects improving market sentiment and suggests demand is strong enough to absorb profit realization, supporting the case for recovery,

Glassnode analysts note.

Axel Adler Jr. believes this Bitcoin rally is fundamentally healthier than those of previous cycles. He suggests the recent downturn is less cause for concern and more a reflection of pre-release volatility around macroeconomic reports and continued global uncertainty.

While short-term uncertainty persists, institutional entities continue to increase exposure. Strategy’s latest move—adding 1,895 BTC to its reserves—reflects ongoing accumulation trends despite broader market hesitancy. 

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