Bitcoin traders flip bullish on price ahead of Powell’s final FOMC as Fed chair

Bitcoin is holding firm near $77,000 ahead of Jerome Powell’s final press conference as Federal Reserve chair.

Now, traders’ risk appetite is back, Split Research founder Zaheer Ebtikar said in a note shared with DL News.

“The sellers who were spooked by macro shifts or quantum fears have already exited,” he said. “Bitcoin has found a stable floor and moved away from headline-driven drama and toward a more mature phase of growth.”

Ebtikar’s call comes amid signs of budding optimism in the crypto industry. Bitcoin has rallied nearly 15% over the past month, while the overall cryptocurrency industry has added about $400 billion in value since February, CoinGecko data shows.

To be sure, the top crypto is still down nearly 40% from its October peak despite the S&P 500 hitting a new record in April. Other assets like gold and oil are also near their peaks.

Still, Bitcoin exchange-traded fund inflows paint a bright picture. US spot Bitcoin exchange-traded funds drew in over $2 billion in net inflows in April, marking it as a second month in a row of positive inflows, DefiLlama data shows. The surge adds to March’s $1.3 billion gain.

“Since we’re currently in a quieter trading range, there’s no immediate rush for the exits,” Ebtikar said.

Powell’s last FOMC

The signs of life unfold against a pivotal moment in Washington.

Powell is expected to keep interest rates unchanged at what economist Ed Yardeni calls his “swan song” — the final press conference of his tenure at the central bank’s helm.

Powell is likely to stress that inflation risks have increased, especially with Brent crude climbing back above $100 per barrel as US-Iran peace talks stall, Yardeni wrote. Higher oil prices complicate any immediate case for rate cuts.

Lower interest rates are good for risky assets like Bitcoin because they disincentivise investors to hold bonds by paying out less yield.

Powell’s term as chair ends on May 15, but he will still hold a Fed governor’s seat through January 2028.

The Senate Banking Committee is set to confirm Kevin Warsh as his successor on Wednesday, with a final vote potentially coming soon after.

Warsh has publicly called for lower rates sooner, though he has also promised independence from political pressure.

President Donald Trump has repeatedly pushed for faster cuts and has clashed with Powell over policy and the Fed’s renovation project, which triggered a Justice Department probe that was later dropped.

“At 2:30 p.m. [ET], Jerome Powell will sing his swan song,” Yardeni said.

Crypto market movers 

• Bitcoin is up 0.5% over the past 24 hours at $77,031.
• Ethereum is up 2.1% over the past few hours at $2,323.

What we’re reading 

• Aave-led 'DeFi United' campaign raises $300m to address Kelp DAO breach — DL News
• Banks are fighting a ‘sideshow’ as Clarity Act stalls. Will it matter? — DL News
• US Military Is Running a Live Bitcoin Node for Cybersecurity Research, Indo-Pacific Commander Tells Congress — Unchained
• The AI margin trap — Milk Road
• Bitcoin mining meltdown? Why IREN’s real future is in AI, according to Bernstein — DL News

Lance Datskoluo is DL News’ Europe-based markets correspondent. Got a tip? Email him at lance@dlnews.com