Bitcoin bulls are ramping up long positions as the May 7 FOMC meeting approaches, with significant open interest and trading volume suggesting heightened buying activity despite recent dips. Analysts expect potential volatility post-meeting but are optimistic about Bitcoin’s trajectory, which often exhibits strong momentum following similar past events.
Bitcoin is seeing a rush of activity from bulls as the market gears up for the Federal Open Market Committee (FOMC) meeting set for May 7. Data shows that long positions are forming around $94,400, and Bitcoin’s price has been holding steady around the $94,500 level. Analyst Axel Adler Jr. suggests this bullish trend could lead Bitcoin, currently around $94,500, to replicate the price surges seen at the end of April which peaked at $97,500.
In a positive sign, the Bitcoin futures market has shown a notable increase in open interest—about $189 million worth—ramping up by 2,000 BTC in just a few hours. This spike in open interest along with a 15% rise in trading volume indicates that, despite a recent price drop, buying interest continues to persist. It appears bulls are keen to capitalise on the fluctuating market.
Interestingly, the funding rate for Bitcoin is hovering near neutral. This suggests a balance of sentiment among both long and short positions in the last eight hours. Yet, there have been brief spikes, like one hitting 0.018% on May 6, suggesting that there might be moments of optimism among traders using leverage.
Michaël van de Poppe, founder of MN Capital, sees an opportunity for Bitcoin to bounce back further. He shared his insight, saying, “I think we’ll continue to grind upward on Bitcoin. The real question is whether Gold will correct after the FOMC announcement, which could signal a shift in the business cycle.” This reflects how intertwined various markets can affect one another.
Swissblock, an investment management firm, released findings on Bitcoin’s price trends around previous FOMC meetings. They observed that Bitcoin’s price momentum typically slows before interest rate decisions, followed by increased volatility post-announcement. Their analysis covered the rate of change (ROC) for Bitcoin from October 2024 to May 2025, showing that significant price increases often occur when the ROC trends positively.
This past behaviour suggests that Bitcoin could see a rise, especially given that the ROC is currently on an upward trajectory. The firm noted that traders should be aware of potential volatility triggered by the upcoming FOMC meeting, dependent largely on the Fed’s rate decision and remarks from Chair Jerome Powell.
Overall, while the market remains intricated and unpredictable, many traders are looking at the upcoming FOMC meeting as a crucial turning point that could set the tone for Bitcoin’s price movements in the near future. As always, though, it’s essential for investors to do their own research since trading carries inherent risks.
