Bitcoin Price Reaction to FOMC Meeting: BTC Age Consumed Metric Confirms $100,000 Breakout Signal

Bitcoin price forecast signals a $100,000 breakout as on-chain Age Consumed and macro data turn sharply bullish after the latest FOMC meeting.
By ibrahim
BTC Price Preview: Bitcoin Eyes Fed's Next Move Ahead of FOMC

Highlights

  • Bitcoin Age Consumed fell 90% in 48 hours, signaling long-term holders are sitting tight amid bullish macro catalysts.
  • The Fed held rates steady at 4.25%-4.50%, signaling policy stability and lifting confidence in decentralized stores of value like BTC.
  • Geopolitical tensions and trade optimism from China increase demand for Bitcoin as fiat alternatives gain favor in risk-hedging portfolios.

Bitcoin price reclaims $97,000 with cooling selling pressure among long-term holders hinting at another leg-up towards $100,000 after US Fed meeting triggered positive market momentum.

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Bitcoin Age Consumed Plummets After FOMC Pause, Signaling Long-Term Holder Confidence

Bitcoin surged in the wake of the May 7 FOMC announcement, with on-chain data suggesting a major breakout may be imminent. One of the most telling indicators is the Bitcoin “Age Consumed” metric, which has collapsed over 90% in the last 48 hours, from 49.2 million BTC-days on Monday to just 4.3 million by Wednesday.

Age Consumed is calculated by multiplying the number of BTC moved by the number of days since those coins were last active.

Bitcoin Age Consumed vs BTC Price | May 7 2025 | Santiment.net
Bitcoin Age Consumed vs BTC Price | May 7 2025 | Santiment.net

It offers insight into whether long-term holders are selling or staying on the sidelines. The sharp drop implies seasoned investors are holding their ground, reinforcing the bullish narrative around Bitcoin price forecast Q2 2025.

This comes as the U.S. Federal Reserve opted to pause interest rates at 4.25%–4.50%, while hinting at a slowdown in balance sheet reductions.

US Fed Holds Interest Rate Unchanged at 4.5%, May 7, 2025 | TradingEconomics
US Fed Holds Interest Rate Unchanged at 4.5%, May 7, 2025 | TradingEconomics

While the Fed acknowledged rising uncertainty and continued inflation pressures, it reiterated its dual mandate goals and offered no signals of imminent tightening. Crypto market received the news positively with Bitcoin price rise 2% to test the $97,500 level within hours of the FOMC decision.

 With long-term holders inactive and short-term speculators facing reduced resistance, BTC price looks poised to test the $100,000 target in the coming sessions.

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CZ Comments, Geopolitical Turmoil, and China Trade Hints Boost Bullish Case

Confidence in Bitcoin was further buoyed by Binance founder Changpeng Zhao, who said this week that “markets still underprice Bitcoin’s global store-of-value momentum.” Speaking on a panel, Zhao cited escalating fiat skepticism across regions like Europe, South Asia, and the Middle East, all of which have experienced growing currency instability in 2025.

The timing of Zhao’s remarks coincided with unexpected diplomatic overtures from China, signaling potential easing of trade restrictions with the United States. Traders interpreted this as a potential liquidity catalyst for global markets—and particularly bullish for risk-on assets like BTC.

Meanwhile, institutional interest appears to be climbing. Derivatives markets have priced in increased volatility for Bitcoin over the next 30 days, with open interest rising sharply post-FOMC. In combination with reduced Age Consumed and improving macro sentiment, some traders believe a $100,000 breakout may be closer than previously anticipated.

In summary, the US Fed’s tempered tone, combined with declining Age Consumed data, signal long-term investors positioning more upside rather than sell, despite Bitcoin price trading at it weekly timeframe peaks near $97,000.

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Frequently Asked Questions (FAQs)

1. What is Bitcoin Age Consumed and why does it matter?

Bitcoin Age Consumed measures how many dormant coins are moved. A sharp drop suggests long-term holders are staying inactive—often bullish. 2. How did the May 2025 FOMC meeting impact Bitcoin? The Fed's decision to pause rate hikes reinforced investor appetite for non-sovereign assets like Bitcoin, pushing sentiment bullish post-announcement. 3. Can Bitcoin really hit $100,000 soon? With macro stability, rising institutional interest, and long-term holders unmoved, Bitcoin appears structurally positioned for a potential $100,000 breakout.

2. How did the May 2025 FOMC meeting impact Bitcoin?

The Fed's decision to pause rate hikes reinforced investor appetite for non-sovereign assets like Bitcoin, pushing sentiment bullish post-announcement.

3. Can Bitcoin really hit $100,000 soon?

With macro stability, rising institutional interest, and long-term holders unmoved, Bitcoin appears structurally positioned for a potential $100,000 breakout.
ibrahim
Crypto analyst covering derivatives markets, macro trends, technical analysis, and DeFi. His works feature in-depth market insights, price forecasts, and institutional-grade research on digital assets.
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