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Highlights
- U.S. Treasury's Bitcoin reserve report is due on Monday and the outcome could trigger global buying momentum.
- Fed expected to hold rates steady this week despite economic contraction and political pressure.
- Oil dips below $60 and equity revival are among the factors that may improve Bitcoin’s risk hedge appeal.
Cryptocurrencies have always been a volatile asset. But at a time when the entire global economic trajectory appears volatile, these digital assets like Bitcoin are attracting more and more investors as a preferred hedge. Bitcoin’s price appears relatively stable on Monday, trading around $94,000.
This week appears to be particularly eventful for both Bitcoin and the broader crypto market. Several milestone events, key regulatory reviews, large movements in the global financial markets, key events within the crypto industry, and several other macroeconomic factors are poised to affect the market within the next few days, starting Monday, May 5.
Here’s a quick glimpse at some of the major factors that are likely to influence the crypto markets and Bitcoin prices this week:
Crypto Market Waits for Bitcoin Reserve Report
Monday (May 5) marks the official deadline for the U.S. Treasury to deliver a key report on the feasibility of federal Bitcoin reserves. The report is likely to outline the nuances of establishing the Strategic Bitcoin Reserve and the United States Digital Asset Stockpile. This development follows President Trump’s executive order signed on March 6, directing all federal agencies to report their holdings of Bitcoin and other digital assets.
If you are waiting to see what the report actually says, the wait may not end today since the report’s findings are not mandated to be publicly disclosed. However, experts say that the report’s implications could significantly influence crypto markets. As the US government attempts to stock up more Bitcoin, other national governments may also follow suit, resulting in a sharp increase in demand and prices.
Feds Likely to Remain Cautious as US Economy Contracts
The US economy shrank by 0.3% in Q1 2025, a first such contraction in three years. While several factors like seasonal swings and inflation have been cited, most experts are pointing to President Trump’s uncertain trade and tariff policies for the downturn. However, Trump blamed his predecessor for the ‘bad parts’ of the economy in a recent interview with NBC.
Later this week, on May 6–7, the Federal Open Market Committee (FOMC) is meeting. Despite the global headwinds, Wall Street is expecting the Fed to hold interest rates steady. Despite pressure from President Trump for rate cuts, the Fed remains cautious due to economic uncertainties stemming from tariffs and immigration policies.
Even though the chances are slim, a potential rate cut could bode well with the crypto markets as the resulting monetary easing would infuse fresh funds.
Oil Prices Decline, Equity Markets Revive
Brent crude prices have fallen below $60 per barrel after OPEC+ announced plans to increase oil production recently, raising concerns about oversupply in the market. Meanwhile, international equities have outperformed U.S. stocks in 2025; however, analysts at Morgan Stanley anticipate a reversal, citing cyclical dynamics. However, over the last couple of weeks, the market has shown signs of revival. A drop in oil prices can help BTC prices, and a revival in the stock market can brighten investor sentiment.
Bitcoin Tests Key Resistance Levels
Bitcoin is currently trading around $94-95k, facing strong resistance at this level. Technical indicators suggest that a sustained move above $95,000 could open the path toward $110,000, while failure to break through may lead to a pullback to support levels around $80,000.
Institutional interest in Bitcoin continues to grow, with Bitcoin ETFs surpassing $90 billion in total assets in just over a year. This trend underscores Bitcoin’s rising legitimacy as an asset class and its increasing adoption by mainstream investors.
This week marks a key phase in how macroeconomic aspects influence the crypto market dynamics. Multiple developments in trade policies, central bank decisions, and cryptocurrency regulations continue to shape the trajectory of digital assets worldwide.
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- Pi Network Price Wyckoff Theory Signals a Surge as One Whale Keeps Buying
- ETH Price Prediction As Bitmine and SharpLink Continue ETH Buying Spree- Analyst Predicts $7K Next
- AVAX Price Prediction as Avalanche $1B Treasury Gains Momentum – Is $55 in Sight?
- Pump Price Forecast as $12M Buyback Fuels Scarcity — Is $0.01 in Sight?
- SUI Price Prediction as Mysten Labs Meets SEC Ahead of ETF Decision—Is $7.5 Next?
