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In a sea of red across the crypto market, one asset continues to shine: Bitcoin. As we edge closer to Jerome Powell’s press conference and the upcoming interest rate decision, the broader market shows signs of apprehension. Bitcoin has been resilient, climbing higher while most altcoins continue to decline. Over in traditional markets, the Nasdaq slipped 0.77%, while Gold surged another 2.91%, marking two consecutive sessions of nearly 3% moves.
The price action paints a clear picture: investors are risk-off ahead of what’s expected to be a volatile FOMC announcement. Despite near-unanimous expectations that there will be no interest rate change, nerves remain high. For those tracking it closely, the interest rate decision is set for 4am AEST, with Powell’s press conference following at 4:30am. My advice? Get your rest. Don’t lose sleep over what Powell might say—tomorrow’s Morning Note will cover everything you need to know, including Bitcoin’s reaction.
BREAKING: Bitcoin Surges on US-China Trade Headlines
In a dramatic twist, news just in confirms that US Treasury Secretary Bessent will meet with China’s top economic official this week. The market's reaction was immediate: Bitcoin broke out, rallying over 2% within an hour, reigniting the road to $100k. S&P 500 futures jumped nearly 1%, while gold plunged 1.5%, completely reversing the cautious overnight price action.
This kind of volatility just before the FOMC is a recipe for chaos. While the surge in risk assets is encouraging, it's important to remain cautious. The rally is still fundamentally tariff-driven, and if the Bessent-China meeting yields no progress, the market could easily reverse. Until then, it's all speculation—stick to the facts when making decisions.
Bitcoin Dominance: Silent Strength, Loud Signal
While some may think Bitcoin has merely been consolidating or correcting, the dominance chart tells a different story. Bitcoin has quietly notched nine straight weeks of dominance growth, now sitting above 65%—a level not seen since January 2021. That period, of course, preceded one of the most explosive altseasons we’ve seen.
But let's not get ahead of ourselves. With dominance this high, investors clearly aren't positioning for altseason yet. Macro uncertainty has them rotating into Bitcoin for safety, and there’s little sign of that trend reversing in the near term.
Stormrake Spotlight: Bittensor (TAO) ($374)
Stormrake Spotlight: Bittensor (TAO) ($374)
TAO showed impressive resilience over the past 24 hours. After falling over 6% intraday, it rebounded following the US-China news, reclaiming the 200 EMA and testing the key resistance at $380, which we’ve flagged repeatedly in recent notes. This level continues to be a hurdle, but today’s rebound is a strong signal.
BTC/USD Key Levels and Price Action:
BTC/USD Key Levels and Price Action:
Bitcoin is in breakout mode. Boosted by the trade meeting news, BTC surged past all major moving averages, breaching $95.7k resistance with conviction. This followed a textbook bounce off $93.5k support, marking the third such rebound in four days.
Momentum and structure are now firmly back in the bulls' control, with eyes firmly on $100k. However, keep an eye on the $98k–$99k resistance zone, where sellers are likely to mount a defense.
BTC Total ETF Flows for 6 May: $ - 122.4 million
(ETF flow data is sourced from https://farside.co.uk/btc/ and reflects figures at the time of writing.)
*All prices are denominated in USD unless stated otherwise*
Written by Alexandar Artis
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