BiyaPay analyst: Federal Reserve interest rate decision ignites cryptocurrency market tonight, Bitcoin's $100000 life or death battle is imminent

According to BlockBeats, on May 7th, the Federal Reserve will announce its latest interest rate decision at 2pm Eastern Time. The market generally expects it to maintain the interest rate unchanged at 4.25% -4.50%, with a probability of 97.2%. However, Powell's post meeting remarks may become a key variable determining the short-term trend of Bitcoin. This resolution comes at a time when the US economy is facing multiple challenges: GDP shrank by 0.3% quarter on quarter in the first quarter of 2025, consumer confidence index fell to a 13 year low, and the Trump administration's tariff policies have exacerbated uncertainty about inflation and growth. If the Federal Reserve remains inactive, Bitcoin may face short-term downward pressure. The current market has partially digested this expectation, and technical indicators show strong support for BTC around $95000. The 4-hour level needs to repair a slight deviation, but the daily chart still remains above MA7, maintaining a strong stance. If Powell releases dovish signals (such as implying a June interest rate cut), coupled with potential liquidity injection expectations from the US Treasury, Bitcoin may break through the resistance level of $97000 and launch an attack on $100000. In extreme cases, if there is an unexpected interest rate cut, the short $3 billion contract may face liquidation, triggering an epic short squeeze market. Institutional trends show that the long short game is intensifying: BlackRock IBIT ETF increased its holdings by over 6954 BTC in a single day, with a total holding of 597000 BTC, accounting for 2.38% of the total circulation; At the same time, the open positions of $300000 call options in the Bitcoin options market surged, betting on price breakthroughs. The on chain data further supports the bullish logic, with the MVRV indicator returning to a healthy range, and the number of active addresses and whale trading volume significantly increasing, indicating that large investors continue to attract funds. The current Bitcoin price is hovering around $96400, just one step away from the $100000 mark. The market is closely monitoring the Federal Reserve's statement on the risk of "stagflation" and the progress of Sino US economic and trade talks. Any policy shift or geopolitical easing signal could become a trigger for the market to explode. Tonight, the battle between long and short is about to break out! BiyaPay, as the world's first multi asset trading wallet, showcases unique value. It has now enabled instant exchange of 30 fiat currencies and 200 digital currencies. Users can directly participate in the US/Hong Kong stock securities market by exchanging USDT 1:1 for USD, with zero transaction fees for digital currency, spot/contract makers.