Bitcoin experienced a short-term trend shift on May 7, coinciding with rising geopolitical tensions and macroeconomic volatility. As market sentiment for Federal Reserve rate cuts in 2025 diminished ahead of the Federal Open Market Committee (FOMC) meeting, Bitcoin and gold mirrored each other's price movements, with Bitcoin briefly dipping below $94,000 before reaching a local high of $97,700. Expectations surrounding the FOMC meeting were focused on Fed Chair Jerome Powell’s statements which could indicate a shift towards a more dovish or hawkish tone. Analysts noted clearing out of liquidity in Bitcoin order books and highlighted a drop in odds for rate cuts, with around 30% for the June FOMC meeting, reflecting a pessimistic outlook among investors. This situation may lead to increased market volatility depending on Fed actions, particularly related to any potential rate cuts. Investors are urged to conduct thorough research before making trading decisions.

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