According to @NFT5lut, Bitcoin is experiencing strong selling pressure, indicating weak sentiment for BTC and cautious positioning among traders, source: @NFT5lut. According to @NFT5lut, whether investors and institutions reinvest will depend on how favorable potential upcoming Federal Reserve interest rate cuts are, making Fed policy guidance a key catalyst for BTC direction, source: @NFT5lut. According to @NFT5lut, there is hope the US Federal Reserve will deliver news supportive to crypto investors and retailers, highlighting the market’s sensitivity to dovish signals, source: @NFT5lut. Based on @NFT5lut’s view, traders may focus on FOMC communications and rate-cut expectations as primary triggers for BTC inflows or continued outflows, source: @NFT5lut.

According to Michaël van de Poppe (@CryptoMichNL), the upcoming FED meeting on Wednesday is widely expected to result in no rate cut, a move that aligns with current market pricing and recent guidance from Federal Reserve officials (source: Michaël van de Poppe on Twitter, May 5, 2025). For crypto traders, this signals continued macroeconomic pressure on risk assets such as Bitcoin and Ethereum, as higher interest rates generally limit upside momentum. However, a surprise rate cut would likely trigger a strong bullish reaction across digital assets due to improved liquidity conditions and shifting investor expectations. Traders should closely monitor the FOMC statement and press conference for forward guidance, as any dovish shift could provide actionable signals for short-term trading strategies.