Bitcoin is once again testing the $95,000 mark as of May 1, with markets factoring in the growing likelihood of the US Federal Reserve cutting interest rates sooner than expected.
Rate Cut Drives Bitcoin Price Upward
Bitcoin’s price edged higher after dipping below $93,000 following the release of US GDP data, which indicated a slowing economy. A weaker economy could push the Fed to reduce interest rates sooner than anticipated, which typically lowers yields on traditional assets like bonds. As a result, investors may turn to Bitcoin and other higher-risk assets.
The chances of a rate cut during the Federal Open Market Committee (FOMC) meeting on June 18 have risen over the past week, increasing from 57% on April 30 to 60% on May 1. Historically, rate cut expectations have acted as a bullish catalyst for risk-on assets such as Bitcoin. For example, Bitcoin saw a surge of over 20% prior to the Fed’s rate cut in December 2024.
Bitcoin’s Surge and Analyst Insight
“Bitcoin is making a strong push toward $95K, bouncing back from a dip caused by the US GDP data,” stated the anonymous Bitcoin analyst BTCmoonmath on X. He added, “Traders are anticipating rate cuts from the Federal Reserve, despite a contracting economy and low consumer confidence.”
All eyes are now on the May 2 jobs report, which will detail job creation in the US for April and potentially influence the crypto market and Bitcoin’s price.
What’s Next for Bitcoin?
Traders are closely monitoring the $95,000 level, with many analysts suggesting that breaking above this resistance could lead to further price gains. According to Glassnode’s latest “Week Onchain” report, Bitcoin recently surged above key technical levels and is attempting to consolidate.
The report highlighted the importance of holding above the 111-day simple moving average (SMA) at $91,300 and the short-term holder (STH) cost basis at $93,200. If Bitcoin can maintain these levels, further price appreciation is possible. However, a rejection could push Bitcoin back into bearish territory.
Analysts Expect a Breakout
“Bitcoin is on the verge of breaking through $96,000,” said popular analyst AlphaBTC in a post on X. He suggests that a strong move above $95,000 could break Bitcoin out of its current consolidation phase, with the next target being the $100,000 mark.
On the flip side, AlphaBTC warned that a drop below the April 30 lows of $93,000 could push Bitcoin further down to the $84,000–$88,000 range.
Crypto analyst Daan Crypto Trades also noted that if Bitcoin continues consolidating without rejection and maintains upward momentum, it could position BTC for a move toward the $100,000 region.
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