Bitcoin Holds Firm as Markets Eye Fed Signal: What’s Behind the $94K Stall?

By Eshorjit ; Infinitrix News Team | May 6, 2025

Global Markets — Bitcoin (BTC) continued to trade steadily near $94,000 on Monday as investors paused ahead of the U.S. Federal Reserve’s upcoming policy decision. With macroeconomic uncertainty looming, the crypto market showed signs of caution despite earlier rallies in 2025.

Risk-Off Mode Before Fed Speaks

As traders brace for a midweek announcement from the Fed, Bitcoin’s volatility has decreased significantly. The leading cryptocurrency has gained over 45% year-to-date but is now facing resistance at the $95K threshold.

“What we’re seeing now is classic consolidation ahead of a macro trigger. The Fed could either reinforce the bull cycle or stall momentum,” said Rachel Hines, crypto strategist at Glassnode.

Other major assets like Ethereum (ETH) and Solana (SOL) posted minor losses, while risk appetite across equities softened slightly. The Nasdaq Composite slipped 0.7% as tech traders reacted to soft earnings guidance and interest rate speculation.

Bitcoin Dominance on the Rise

BTC dominance rose to 54.2%, its highest in nearly a year. This suggests investors are retreating from altcoins in favor of relatively stable assets amid global uncertainty.

“Dominance creeping up during flat markets is a sign of defensive positioning. It shows that people still view Bitcoin as the crypto equivalent of digital gold,” said Arjun Roy, founder of CryptoLedger Labs.

Analysts expect this dominance to persist until the Fed provides clarity on rate policy and inflation projections.

Institutional Activity and Technical Factors

Recent on-chain data shows consistent BTC accumulation by long-term holders and a sharp decline in exchange inflows. This has created a ‘supply crunch’ narrative among bulls.

Technical indicators are flashing mixed signals. Bitcoin’s RSI has cooled from overbought levels, while moving averages show potential crossover strength around $91K.

“The technical setup is healthy. If BTC closes above $95K this week, the next target could be $100K by mid-Q2,” added Hines.

Global Cues: Oil, Inflation & Geopolitics

Outside the crypto sphere, global developments continue to influence sentiment. Rising oil prices and potential Middle East tensions could trigger flight-to-safety moves — indirectly benefiting Bitcoin.

Additionally, softer inflation prints in the U.S. and EU could relieve pressure on central banks, giving crypto room to breathe.

Conclusion: Waiting for the Spark

While Bitcoin holds firm at $94K, the market remains in a cautious holding pattern. The next 48 hours could define the direction for May and potentially Q2 overall.

Infinitrix News will monitor the Fed outcome, institutional shifts, and on-chain metrics to track where crypto heads next. Until then, BTC’s silent resilience may prove more telling than dramatic spikes.