Key Takeaways:

Data shows Bitcoin bulls opening margin long positions from $94,400.

A $189 million increase in Bitcoin futures open interest and a 15% increase in trading volume show sustained buying interest.

BTC momentum tends to slow before FOMC meetings and then turns volatile afterward. The same could happen following this week’s Federal Reserve statements.

Bitcoin (BTC) bulls are holding strong around the $94,500 level as the market awaits the Federal Open Market Committee (FOMC) meeting on May 7. Bitcoin analyst Axel Adler Jr. noted BTC’s price strength and pointed out a bullish cluster of long positions forming around $94,400 in the futures market. A similar cluster was observed at the end of April, which pushed BTC prices to $97,500.

Bitcoin futures position dominance data. Source: X.com

Similarly, Bitcoin futures open interest (OI) exhibited a swift increase of 2,000 BTC, i.e., roughly $189 million, over the past few hours. A rise in OI and a 15% increase in aggregated volume imply consistent buying pressure despite the price dip.

The aggregated funding rate remains near neutral, indicating balanced sentiment between longs and shorts over the past eight hours. However, funding rates have fluctuated, with brief spikes to 0.018% on May 6, suggesting periodic optimism among leveraged traders.

Bitcoin open interest, aggregated volume, funding rate and price. Source: Velo. chart

MN Capital founder Michaël van de Poppe also identified Bitcoin’s bounce and said that BTC could continue to recover in the markets. The analyst said,

“I think we’ll continue the grind on Bitcoin upward, the key factor here is whether Gold starts to correct after FOMC tomorrow, indicating that there’s the start of the business cycle.

Related: Bitcoin sell-off to $93.5K is a brief hiccup — Data still supports new BTC highs in 2025

Bitcoin momentum stalls before FOMC

Swissblock, an investment management firm, revealed that Bitcoin’s momentum typically slowed down before the last five interest rate decisions, followed by a sharp increase in price volatility. In an analysis on X, the firm presented a chart tracking Bitcoin’s 25-day rate of change (ROC) from October 2024 to May 2025.

Bitcoin’s price steadily climbed in the charts whenever the ROC trended up or went positive. It was mainly observed during October-November 2024, and recently in April 2025.

Bitcoin price momentum around FOMC. Source: X.com

Consequently, when the ROC tapers off, BTC corrects, an outcome observed in January-February 2025. Recent data indicates that the ROC remains on an uptrend in May 2025, which increases the possibility of a price gain for Bitcoin.

Swissblock emphasized that the FOMC meeting is a potential catalyst for Bitcoin’s next move, noting that the rate decision and Federal Reserve Chair Jerome Powell’s tone could spark volatility in financial markets.

Related: Bitcoin price rallied 1,550% the last time the ‘BTC risk-off’ metric fell this low

This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.

21Shares has launched an exchange traded product (ETP) in Europe, providing investors with exposure to Crypto.com’s Cronos token, the asset manager said. 

The ETP is listed on Euronext’s Paris and Amsterdam exchanges, 21Shares said in a May 6 announcement. 

Cronos (CRO) is a layer-1 blockchain network affiliated with Crypto.com, a centralized exchange. 

The chain is designed to integrate with the Ethereum and Cosmos ecosystems and support “decentralised finance (DeFi), NFTs, and Web3 applications,” 21Shares said. 

The ETP aims to provide investors with a “straightforward way to integrate CRO into their portfolios through traditional banks and brokers, eliminating the need to directly handle digital wallets or exchanges,” 21Shares said. 

The CRO token’s historical performance. Source: CoinMarketCap

“By launching a Cronos ETP, we are offering investors […] regulated exposure to a blockchain ecosystem that is driving real-world adoption,” Mandy Chiu, 21Shares’ head of financial products development, said in a statement.

Related: Standard Chartered sees BNB more than doubling in 2025

The CRO token has a market capitalization of approximately $2.3 billion and a fully diluted value (FDV) of nearly $8.7 billion, according to data from CoinMarketCap. 

Cronos has a total value locked (TVL) of approximately $400 million, according to data from DeFiLlama. 

Its DeFi ecosystem includes Crypto.com’s liquid Ether staking token, Crypto.com Staked ETH, which has nearly $64 million in TVL, the data shows. 

Cronos’ TVL. Source: DeFiLlama

Altcoin ETFs abound

On May 5, asset manager VanEck filed to list an exchange-traded fund (ETF) in the US tied to yet another exchange-affiliated token. 

The VanEck BNB ETF is the first proposed ETF in the US holding BNB Chain’s native token, BNB. The chain is affiliated with Binance, the world’s largest centralized exchange. 

In the US, 21Shares has proposed ETFs holding cryptocurrencies including Dogecoin (DOGE), Polkadot (DOT), and Solana (SOL). 

Asset managers are seeking the US Securities and Exchange Commission’s (SEC) permission to list upward of 70 cryptocurrency ETFs. 

The wave of filings has come as a result of US President Donald Trump softening the SEC’s regulatory posture toward crypto after taking office in January.

Magazine: Solana ‘will be a trillion-dollar asset’: Mert Mumtaz, X Hall of Flame

Key Takeaways:

The Fed may pause rates but inject liquidity. Crypto could rally as a recession hedge.

The weak US dollar and gold rally signal a shift to scarce assets.

The US Federal Reserve Open Market Committee (FOMC) interest rate decision on May 7 will be a defining moment for risk-on assets, including cryptocurrencies. While the consensus points to no change in interest rates, Bitcoin (BTC) and altcoins could see gains if the US Treasury is compelled to inject liquidity to stave off an economic recession.

A more accommodative monetary policy could stimulate activity, but the Federal Reserve (Fed) is also contending with a weakening US dollar. Some analysts argue that a US interest rate cut may fail to stimulate growth as recession risks persist, potentially creating an ideal environment for alternative hedge assets such as cryptocurrencies.

Source: Jim Paulsen

Economist and investor Jim Paulsen notes that when Fed funds trade above a “neutral” interest rate (Fed Funds minus the annual core Personal Consumption Expenditures Index), the economy has historically moved toward recession or a “growth recession,” a period of sluggish growth with rising unemployment and weak consumer demand. Similar patterns since 1971 support this analysis.

According to Paulsen, the Fed will likely be compelled to lower interest rates. Moreover, central bank Chair Jerome Powell is under significant pressure from US President Donald Trump, who has criticized the Fed for not reducing the cost of capital quickly enough.

Reasons why the Fed could start easing

Concerns about overheated markets remain as the US consumer inflation exceeds the 2% target, and April unemployment rates of 4.2% suggest no signs of economic weakness.

FOMC rates estimate for the Sept. 17 decision. Source: CME FedWatch

Market expectations, as reflected in Treasury yield futures, show a 76% chance of interest rates at 4.0% or lower by Sept. 17. This probability has dropped considerably from 90% on April 29, according to the CME FedWatch tool. 

Traders are growing less confident that the Fed will ease monetary policy. While this may initially seem bearish for risk assets, it could prompt the Treasury to inject liquidity into markets to support government spending.

Regardless of the FOMC’s decision, some analysts point out that the Fed’s recent $20.5 billion Treasury bond purchase on May 5 signals renewed intervention. Additional liquidity has historically been bullish for cryptocurrencies, especially as the US dollar lags behind other major global currencies. Consequently, investors are increasingly seeking alternative hedges rather than holding cash.

Related: Bitcoin price rallied 1,550% the last time the ‘BTC risk-off’ metric fell this low

DXY US Dollar Index (left, green) vs. Bitcoin/USD (orange). Source: TradingView / Cointelegraph

The US Dollar Index (DXY) has dropped below 100 for the first time since July 2023, as investors retreat from US markets amid economic uncertainty. Meanwhile, gold has risen over 12% in the past 30 days and is now trading just 2% below its all-time high of $3,500. Declining confidence in the US Treasury’s ability to finance its debt favors scarce assets such as Bitcoin.

While the probability of multiple rate cuts has diminished, this scenario may still be favorable for cryptocurrencies. Should the Fed be pressured to expand its balance sheet, it would likely fuel inflation and erode the value of fixed-income investment factors that ultimately support cryptocurrencies.

This article is for general information purposes and is not intended to be and should not be taken as legal or investment advice. The views, thoughts, and opinions expressed here are the author’s alone and do not necessarily reflect or represent the views and opinions of Cointelegraph.