Bitcoin Braces for Potential Pullback to $90K Amid Fed Meeting Uncertainty

Bitcoin’s recent rally above $98,000 has hit a snag as macroeconomic uncertainty looms ahead of the Federal Reserve meeting. Traders are now preparing for a possible retreat to $90,000, with technical and fundamental factors contributing to the cautious sentiment.

Bitcoin Faces Potential Retreat to $90K as Traders Await Fed Meeting

Bitcoin slipped below $95,000 amid growing macroeconomic uncertainty, with traders now eyeing a possible decline to $90,000 or lower. The pullback follows a two-week rally that briefly pushed BTC past $98,000, drawing both retail and institutional interest.

Analysts highlight technical and macro risks that could further pressure prices. "We’re back at a key resistance zone that acted as support from December to February," said FxPro’s Alex Kuptsikevich. "The next downside targets are $92,500 and $89,000. A break below $90,000 WOULD be psychologically damaging."

Market focus has shifted to this week’s Federal Reserve meeting, where developments could influence Bitcoin’s near-term trajectory. The cryptocurrency remains sensitive to broader financial market sentiment as traders weigh technical levels against macroeconomic headwinds.

Key Crypto Events You Can’t Miss This Week: Will BTC Dip?

This week’s crypto market hinges on macroeconomic signals, with the Federal Reserve’s interest rate decision taking center stage. Expectations lean toward unchanged rates at 4.25%-4.5%, though political pressure from former President Trump for a cut adds volatility. His tariff rhetoric and claims of economic strength inject uncertainty into the Fed’s messaging.

Beyond the rate hold itself, traders will dissect Chair Powell’s commentary for clues on monetary policy trajectory—particularly any nod to trade policy impacts. Bitcoin and altcoins remain sensitive to shifts in risk appetite; a hawkish tilt could trigger short-term downside across crypto assets.

Institutional Bitcoin Strategy Adds $180M Amid Market Uncertainty

A prominent bitcoin accumulation strategy bolstered its holdings by 1,895 BTC ($180.3 million) between April 28 and May 4, acquiring coins at an average price of $95,167. The move solidifies the unnamed firm’s position as the largest corporate holder of Bitcoin, underscoring its commitment to treating the cryptocurrency as a core treasury asset.

Purchases occurred while Bitcoin traded between $90,000-$95,000, reflecting institutional confidence despite macroeconomic uncertainty and Federal Reserve policy debates. The disciplined accumulation continues a multi-year strategy that has weathered multiple market cycles.

Bitcoin Treasury Firms’ Untapped Capital Could Fuel BTC Price Surge: NYDIG

Public companies holding bitcoin may possess a hidden catalyst for market growth. NYDIG research highlights their unused share issuance capacity—termed ’dry powder’—which could significantly boost BTC prices if deployed.

Greg Cipolaro, NYDIG’s global head of research, suggests a 10x ’money multiplier’ effect based on historical capital inflow patterns. This model projects a potential price impact exceeding $42,000 per BTC, though the report’s full calculation remains truncated.

Strategy Expands Bitcoin Holdings with $180M Purchase, Now Holds 555,450 BTC

Michael Saylor’s Strategy, formerly MicroStrategy, has acquired an additional 1,895 Bitcoin for $180.3 million, according to a May 5 SEC filing. The purchases were executed between April 28 and May 4 at an average price of $95,167 per BTC.

Funding came entirely from equity offerings—$128.5 million from common stock and $51.8 million from STRK preferred shares. The company has exhausted its previous stock sale authorization and established a new program for 2025.

With this latest accumulation, Strategy’s treasury now contains 555,450 BTC, cementing its position as the largest corporate holder of the cryptocurrency. The MOVE exemplifies continued institutional conviction despite Bitcoin’s volatile price history.

Bernstein Predicts $330B Corporate Bitcoin Treasury Inflows by 2029

Corporate treasury purchases of Bitcoin could surge to $330 billion by 2029, according to a Bernstein research report. MicroStrategy (MSTR) is projected to lead this wave, potentially acquiring an additional $124 billion worth of BTC in a bull-case scenario. The firm recently announced a $21 billion stock offering to fund further Bitcoin purchases.

The U.S. regulatory environment favoring cryptocurrencies has accelerated corporate adoption of Bitcoin as a treasury asset. Public companies currently hold approximately 2.4% of Bitcoin’s total supply, or about 72,000 BTC.

Bernstein anticipates smaller firms will follow MicroStrategy’s lead, with listed companies potentially allocating $205 billion to Bitcoin acquisition strategies. This trend reflects growing institutional confidence in Bitcoin as a long-term store of value.