Bitcoin has made a strong push back near $100,000, bouncing after the U.S. Federal Reserve decided to keep interest rates unchanged for now.
Key points
- Bitcoin reached $99,000 for the first time since late February.
- The Fed kept rates between 4.25% and 4.50%, citing inflation and employment.
- CME futures data suggested a low chance of a rate cut ahead of the decision.
After the flagship cryptocurrency was already up to around $97,000 after US-China trade talks news , Bitcoin jumped to $99,000 following the Fed’s May 7 announcement. The central bank’s rate-setting committee chose not to lower interest rates, which can sometimes slow down borrowing and investment. When rates stay steady or go down, markets like crypto often respond positively.
Fed Chair Jerome Powell explained the decision by pointing to two concerns—rising unemployment and inflation risks. Although inflation has eased compared to last year, it is still higher than the Fed’s 2% long-term goal. Powell mentioned that many people and businesses are feeling unsure about the economy, partly because of ongoing trade tensions.
Interestingly, U.S. President Donald Trump has recently pressured the Fed to cut rates faster. He even said he might fire Powell for being “too late” in doing so. However, Powell pushed back by highlighting that the economy remains stable and the job market is still strong.
Following the Fed’s comments, Bitcoin did dip briefly under $96,000. But that pullback was short-lived. By the end of the day, Bitcoin was sitting at $98,700—just a step away from breaking into six-figure territory again.
If market momentum continues, we could be looking at $100,000 Bitcoin in the coming days. Futures traders still expect the Fed to lower rates gradually, with forecasts suggesting a drop to 3.6% by the end of 2025. Rate cuts tend to boost investment in riskier assets like Bitcoin, as they can lower returns on savings and traditional bonds.
For now, though, we wait. But if you are watching Bitcoin closely, this may be one of those times where things move fast.
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