Bitcoin (BTC) is on a tear tonight, surging to 97,388 as of Tuesday evening at 8:30 PM ET.

This latest rally comes amid heightened anticipation around Tuesday’s Federal Reserve FOMC interest rate decision, which many analysts believe could inject even more volatility—and opportunity—into crypto markets.

This rally extends Bitcoin’s multi-week run above $90,000 and underscores renewed investor confidence, even as the broader financial markets remain jittery over monetary policy signals.

FOMC Decision Looms Large Over Markets

The Federal Open Market Committee (FOMC) is set to announce its latest policy decision on Tuesday, May 7, and Bitcoin traders are watching closely. While the Fed is widely expected to hold interest rates steady, markets are increasingly positioning for dovish language that could hint at future rate cuts.

According to a recent report from Cointelegraph, Bitcoin bulls are “rushing into long positions” in anticipation of favorable macro signals. Data shows that futures open interest and funding rates have risen notably, signaling strong trader conviction that BTC could extend its gains following the meeting.

Bitcoin Dominance Hits 4-Year High

In a sign of growing investor confidence in Bitcoin over altcoins, BTC’s dominance—its share of the total cryptocurrency market cap—has surged to levels not seen since 2021.

Per CoinDesk, this spike in dominance coincides with a broader market risk-off sentiment. As uncertainty grows around interest rates and economic growth, capital is rotating out of more speculative altcoins and back into Bitcoin, viewed as a “digital gold” by many institutional investors.

“Bitcoin is the safe haven in crypto during macro uncertainty,” said one analyst. “Its dominance signals a reallocation to quality.”

Institutional Inflows Add Fuel to the Fire

Further bolstering the bullish narrative, U.S.-based Bitcoin ETFs have recorded over $420 million in inflows over the past 24 hours, according to blockchain analytics data. Leading the pack is BlackRock’s iShares Bitcoin Trust (IBIT) with more than $529.5 million in single-day inflows.

This surge in institutional demand suggests that traditional finance continues to accumulate Bitcoin on dips—adding upward pressure to price action ahead of key economic catalysts.

What’s Next for Bitcoin? $100K in Sight

If the Fed signals a more dovish outlook or hints at easing later this year, Bitcoin could accelerate its climb past $100,000—a level many investors see as the next major resistance.

Key Short-Term Price Levels to Watch:

• Support: $94,000 and $92,500
• Resistance: $98,500 and $100,000 psychological level
• Dominance: 55.3% (highest since April 2021)

As volatility builds into the May 7 announcement, traders should prepare for rapid price moves in either direction. However, the underlying momentum and on-chain metrics strongly favor continued upside for now.

Final Thoughts

Bitcoin’s rally to $97,000 tonight reflects more than just technical momentum—it’s a story of growing confidence ahead of a potentially pivotal Fed decision.

With rising institutional inflows, increased BTC dominance, and heightened leverage on futures markets, all eyes are on the FOMC.

If macro conditions align, Bitcoin’s next stop could be $100,000—and possibly beyond.

BITCOIN GUIDES & RESOURCES:

• Latest Bitcoin Updates and Headlines
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• How to Buy Bitcoin in 2025: A Step-by-Step Guide for First-Time Investors