Bitcoin (BTC) Surges to New All-Time High of $97,388 Ahead of Fed FOMC Meeting

This latest rally comes amid heightened anticipation around Tuesday's Federal Reserve FOMC interest rate decision, which many analysts believe could inject even more volatility

Bitcoin (BTC) price rose to a new 97,388 high on Tuesday evening, extending its multi-week run above the $90,000 level amid heightened anticipation around Tuesday’s Federal Reserve FOMC interest rate decision.

This latest rally pushes Bitcoin closer to the $100,000 mark, a level that many analysts believe could be reached if the Fed signals a more dovish outlook or hints at potential interest rate cuts later this year.

The FOMC is set to announce its latest policy decision on Tuesday, May 7, and Bitcoin traders will be watching closely for any signals that could inject even more volatility—and opportunity—into crypto markets.

This rally extends Bitcoin’s multi-week run above $90,000 and underscores renewed investor confidence, even as the broader financial markets remain jittery over monetary policy signals.

FOMC Decision Looms Large Over Markets

The Federal Open Market Committee (FOMC) is set to announce its latest policy decision on Tuesday, and Bitcoin traders are positioning for any signals that could hint at future interest rate cuts.

According to a recent report by Cointelegraph, Bitcoin bulls are “rushing into long positions” in anticipation of favorable macro signals. Data shows that futures open interest and funding rates have risen notably, showcasing strong trader conviction that BTC could extend its gains following the meeting.

Bitcoin Dominance Hits 4-Year High

In a sign of growing investor confidence in Bitcoin over altcoins, BTC’s dominance—its share of the total cryptocurrency market cap—has surged to levels not seen since 2021.

Per CoinDesk, this spike in dominance coincides with a broader market risk-off sentiment. As uncertainty grows around interest rates and economic growth, capital is rotating out of more speculative altcoins and back into Bitcoin, viewed as a “digital gold” by many institutional investors.

“Bitcoin is the safe haven in crypto during macro uncertainty,” said one analyst. “Its dominance signals a reallocation to quality.”

Institutional Inflows Add Fuel to the Fire

Further bolstering the bullish narrative, U.S.-based Bitcoin ETFs have recorded over $420 million in inflows over the past 24 hours, according to blockchain analytics data. Among the institutions pouring money into crypto, BlackRock’s iShares Bitcoin Trust (IBIT) saw single-day inflows of over $529.5 million.

This surge in institutional demand suggests that traditional finance continues to accumulate Bitcoin on dips—adding upward pressure to price action ahead of key economic catalysts.

What’s Next for Bitcoin? $100K in Sight

If the Fed signals a more dovish outlook or hints at easing later this year, Bitcoin could accelerate its climb past $100,000—a level many investors see as the next major resistance.

Key Short-Term Price Levels to Watch:

As volatility builds into the May 7 announcement, traders should prepare for rapid price moves in either direction. However, the underlying momentum and on-chain metrics strongly favor continued upside for now.

Final Thoughts

Bitcoin’s rally to $97,000 tonight reflects more than just technical momentum—it’s a story of growing confidence ahead of a potentially pivotal Fed decision.

With rising institutional inflows, increased BTC dominance, and heightened leverage on futures markets, all eyes are on the FOMC.

If macro conditions align, Bitcoin’s next stop could be $100,000—and possibly beyond.

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