Bitcoin surges to $99,338 after the Federal Reserve opts to keep interest rates unchanged — pushing BTC closer than ever to its next major psychological target. Bitcoin (BTC) is now just $662 nears $100K , trading at $99,338 as of May 8, 2025 — marking its highest level in nearly three months.
The surge follows the U.S. Federal Reserve’s decision to hold interest rates steady , despite increasing pressure from former President Donald Trump, who recently threatened to remove Fed Chair Jerome Powell for delaying rate cuts.
Fed Keeps Rates Unchanged Despite Political Pressure
In a widely anticipated move, the Federal Reserve kept its benchmark interest rate within the range of 4.25% to 4.50% during its latest policy meeting on May 7.
Despite calls from former President Donald Trump urging faster action on rate reductions, Fed Chair Jerome Powell reiterated that the central bank would remain patient amid ongoing economic uncertainty.
Powell cited concerns over rising unemployment risks and persistent inflation as key reasons behind the decision. He noted that while inflation has declined significantly, it still remains above the Fed’s long-term target of 2% .
“Despite heightened uncertainty, the economy is still in a solid position,” Powell said during his post-meeting press conference.
Market data from the CME Group’s FedWatch Tool showed traders were not expecting a rate cut this month, aligning with the Fed’s cautious stance.
Powell also highlighted that the labor market remains strong, with the unemployment rate staying low, and described it as being “at or near maximum employment.”
The market currently expects the Fed to reduce the federal funds rate to 3.6% by the end of 2025 , assuming inflation continues to trend downward.
Bitcoin Rallies Past $99,000 After Brief Dip
Following Powell’s remarks, Bitcoin initially dipped below $96,000 , reaching a low of $95,866 , before swiftly rebounding.
Within hours, BTC regained momentum and climbed past $98,000 — a level not seen since February 21, 2025 — and continued rising to hit $99,338 , signaling renewed bullish sentiment among investors.
This rally coincides with rising investor confidence, reflected in the Crypto Fear & Greed Index , which recently moved into “Greed” territory. Additionally, spot Bitcoin ETFs have seen inflows totaling $4.41 billion since March 26, signaling growing institutional adoption.
Analysts Warn of Potential Volatility Ahead
While the short-term outlook appears bullish, some analysts remain cautious. Timothy Peterson , a network economist, warned in March that if the Fed delays rate cuts beyond 2025, it could trigger a broader financial downturn — potentially dragging Bitcoin down to $70,000 .
Powell, however, remains patient, stating that the Fed is “well-positioned to wait for greater clarity” before making any major moves.
Conclusion
Bitcoin’s climb to $99,338 highlights the growing influence of macroeconomic factors on crypto markets. With the Fed holding rates steady , investors are watching closely for how future policy decisions — and political pressures — will shape the next phase of the bull cycle.
As Bitcoin continues to gain traction among institutional investors nears $100K, its correlation with traditional markets may become even stronger in the months ahead.
