- Bitcoin performs better than gold and stocks for FOMC, which indicates the growing safe port appeal power.
- Analysts expect a dip in the short term, but macro fencing can soon feed the renewed BTC upside down.
Bitcoin [BTC] remains resilient to the increasing pre-fomc voltage and hesitating the wider market while traders are bracing for the upcoming policy update of Federal Reserve Jerome Powell.
With the interest rates that are expected to remain stable, analysts look at a potential short -term correction within the next 48 hours.
Nevertheless, Bitcoin’s continuing outperformance of both gold and the S&P 500 in the past month is a growing “only-all” story, which indicates the deepening of the trust of investors, even in a careful environment.
History suggests pain for the bow
Since the 1970s, every time the real federal funds have considerably exceeded natural interest rates, the US economy has entered into a complete recession or experienced a delay in growth.
The graph below, based on Jim Paulsen’s analysisemphasizes this pattern with striking clarity.
Currently, the real rate is far above the neutral percentage, with reflection of the peaks that came before economic decline.
Source: X
President Trump urges the Federal Reserve to lower the interest rates, but the central bank seems to be holding during her meeting on 7 May.
Officials are approaching the decision carefully and weigh the conflicting economic signals -a Q1 GDP -Sample against strong April task numbers.
However, with the rates of Trump that introduce new inflationary pressure, the risk of delayed relaxation can grow.
Is Bitcoin the new safe haven?
In the midst of increasing uncertainty and nourished policy paralysis, Bitcoin continues to perform better than traditional assets. BTC rose more than 7% in April and surpasses both gold and the S&P 500, the latter of which remained under water a large part of the month.
While Gold was stable in the vicinity of 5%, the Rally of Bitcoin reflects a growing shift in investor behavior.
Source: Crypto -Rang
With recession risks climbing and shaking shares, Bitcoin seems to absorb a capital that is traditionally reserved for gold or defensive shares.
If the tariff reductions yield later this year, BTC could be renewed upward impulse as a liquidity return and risk appetite.
BTC market positioning: “only” return or just a break?
Bitcoin remains technically intact despite mild sales pressure for the FOMC. According to analyst Michael van de Poppe, BTC is keep ‘nice’ up And can be a bottom, with a potential low formation between today and tomorrow.
The attached graph shows the liquidity clustered around the range of $ 61.5k- $ 62.5k; Marked as a crucial re-entry zone as Bitcoin falls further.
Source: X
After a strong rally at the end of April, BTC entered into a consolidation, a common pattern prior to large FED announcements.
Nevertheless, the wider trend remains intact and the market sentiment shifts to a possible relaxation cycle. If the conditions coordinate, the “only-all” statement can quickly regain momentum.
If Bitcoin holds the green zone, Bulls can take the load and insist on a continuous movement higher.