Traders Gain Confidence as Bitcoin Nears $77,000 Before Powell's Final FOMC

As Bitcoin trades near $77,000, traders show increased risk appetite in light of Jerome Powell's impending final press conference as Federal Reserve chair. Analysts note a resurgence of confidence among traders, particularly with net inflows into U.S. spot Bitcoin exchange-traded funds (ETFs) surpassing $2 billion in April, following a $1.3 billion increase in March.

According to Zaheer Ebtikar, founder of Split Research, the market seems to have found a stable floor as sellers wary of macroeconomic shifts exit. He notes, “The sellers who were spooked by macro shifts or quantum fears have already exited.” Over the past month, Bitcoin has seen nearly a 15% price increase, while the broader cryptocurrency market gained about $400 billion in value since February, as reported by CoinGecko.

Despite this positive momentum, Bitcoin remains down approximately 40% from its October 2023 peak. Ebtikar emphasizes that current trading conditions—characterized by a quieter market—do not pressure traders to exit quickly. This period of optimism coincides with Powell's final FOMC meeting where he is expected to maintain interest rates, complicating prospects for potential rate cuts amid rising inflation risks linked to increased oil prices.

Powell's term as chair concludes on May 15, 2026, though he will continue as a Federal Reserve governor through January 2028. The Senate Banking Committee is set to confirm Kevin Warsh as his successor, who has advocated for earlier rate cuts while maintaining independence from political influences. Economists, including Ed Yardeni, label Powell’s last meeting as a pivotal moment for monetary policy, with potential implications for risk assets like Bitcoin, particularly if rates are held steady or increased.

As of now, Bitcoin shows a 0.5% increase over the past 24 hours, holding firm amidst fluctuating market conditions. Ethereum also experiences a rise, gaining 2.1% in a similar timeframe.