The Federal Reserve Maintained Its Lending Rate Between 4.25 and 4.5 Percent on Wednesday

The Federal Reserve maintained its lending rate between 4.25 and 4.5 percent on Wednesday, May 7. The Fed downplayed the immense pressure from the U.S. President Donald Trump to lower its benchmark interest rates

The Federal Reserve kept the lending rate in the range of 4.25 percent to 4.5 percent on Wednesday, May 7. The Fed also played down pressure from U.S. President Donald Trump to lower its benchmark interest rates further.

The committee continues to assess the risks of higher unemployment and inflation.

The Fed will continue to reduce its holdings of Treasury securities, highlighting its stance on Quantitative Tightening (QT). However, the Fed will act appropriately in the event of any risks to ensure maximum employment and 2 percent inflation.

Midterm Expectations for Bitcoin Price

Following the announcement, the broader crypto market saw slight losses. After Bitcoin price touched levels above $97k earlier on Wednesday, the flagship coin pulled back slightly, trading around $96,156 during the mid-North American trading session.

According to technical analysis, Bitcoin price shows a short-term bearish sentiment, especially after encountering rejection twice at the resistance level of about $97.6k since the beginning of May.

In the four-hour timeframe, Bitcoin price has been ranging between $93,685 and $97k. A breach of the established support level around $93.6k will likely push the flagship coin towards $91k in the near term.

However, a consistent close above $97k in the coming days could pave the way for a rally towards the all-time high above $100k.

Examining Whale Activity Closely

To gain insight into Bitcoin whale activity, it's helpful to examine the U.S. spot BTC ETF market. Over the past three weeks, the U.S. spot BTC ETFs have shown positive but decreasing cash flow. Despite this, Bitcoin maximalist investors, including BlackRock’s IBIT, Strategy, and Metaplanet, have continued to accumulate more BTC coins regardless of the underlying price volatility.

Furthermore, Bitcoin price is anticipated to follow the Golf price action in the long run, driven by a rising global money supply and high demand from institutional investors.