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#BitcoinStrategicReserveAct Bitcoin price targets 100,000 Dollar with a decreased likelihood of interest rate cut.
Geopolitical developments and the anticipated interest rate decision from the Federal Reserve are increasing volatility in the markets, while Bitcoin is rising again with a short-term change in direction.
Bitcoin and gold move in tandem with macroeconomic fluctuations in lower time frames.
The interest rate decision from the US Federal Reserve and the press conference are just hours away.
Price cut expectations in 2025 have sharply declined ahead of the FOMC meeting.
BTC experienced a sudden change in short-term direction on May 7 as geopolitical triggers created a new wave of volatility in high-risk assets.
Bitcoin investors are focusing on the "tone shifts" of the Federal Reserve.
Data showed that BTC/USD made a surprising comeback after dropping below 94,000 Dollar to reach its lowest level in May.
Bitcoin and gold stabilized after reaching local peaks of 97,700 Dollar and 3,435 Dollar respectively.
News of rising tensions between India and Pakistan and the possibility of a breakthrough in the trade deal between the United States and China kept the markets moving.
Investors had no time to rest, as the Federal Reserve's interest rate decision was scheduled to be announced later on May 7.
As previously reported, market expectations for the Federal Open Market Committee meeting (FOMC) were almost uniformly clear, but the statement and the press conference by Federal Reserve Chairman Jerome Powell drew more attention.
The market will closely monitor any changes in their tone, which has been largely mixed recently, either towards easing or tightening.
Keith Allan, who monitors Bitcoin order book activity, said the liquidity ahead of the event has been "drained."
"I was surprised that Bitcoin stayed above YOU, but I wouldn't be shocked if the price tested that range before the week is over," Alan told his followers, pointing to this year's highest price of $93,500 as a potential target for a drop.
"Clearly pessimistic"
In a later analysis, the on-chain analytics platform indicated that the likelihood of price reductions occurring sooner in 2025 has diminished.
The probability of a price cut at the Federal Open Market Committee meeting in June was around 30%, which was significantly lower than it had been in recent weeks.
"The outlook is clearly pessimistic at the moment," Darkfost noted, adding:
"If the Federal Reserve cuts in this context, it could lead to fluctuations and ( depending on the number of basis points ) that cause fear among investors."