Bitcoin price forecast: After gaining 2.7% over the past two days, Wednesday’s Bitcoin price is steadying at $97,000. As US and Chinese officials get ready to start high-level negotiations meant to lower tensions in their continuous trade conflict, optimism is returning to the crypto market. Still, care is urged since the forthcoming US Federal Reserve interest rate decision can cause further volatility in risk markets like Bitcoin.
Bitcoin recovers as Trade Tensions Between China calm down
Two of the biggest economies in the world, the United States and China, will start diplomatic talks this week in Switzerland, according to a BBC story on Wednesday. Chinese Vice Premier He Lifeng and US delegates Scott Bessent and Jamieson Greer are spearheading the presentations.
Rising tariffs call for this; the US imposes taxes of up to 145% while China reacts with 125%. Though the conversations represent a significant change since President Donald Trump took office, experts think any meaningful solution could take months. The news was welcomed by the crypto market, which saw Bitcoin recovering the $97,000 milestone following a minor weekend fall.
Fed Action Might Set Off Volatility in Bitcoin Prices
A recent K33 Research analysis suggests that later today’s Federal Open Market Committee (FOMC) decision might be a major volatility trigger. President Trump allegedly pushed Fed Chair Jerome Powell to execute emergency rate cuts following a previous meeting. Still, most analysts believe rates will stay the same between 4.25% and 4.5%.
The recent decline in Bitcoin’s 7-day volatility, which reached a 563-day low on April 30, is one main reason driving curiosity. Now rising only a little at 1.3%, this constrained volatility points to a possible significant price movement soon.
Such low-volatility periods normally last for a short time. Unexpected price movements might follow traders returning to the market and closing leveraged holdings. The FOMC’s announcement could be the trigger that ends this tranquil spell for Bitcoin.
New Hampshire Leading with Strategic Bitcoin Reserve
Tuesday’s legislative signing of House Bill 302 by New Hampshire Governor Kelly Ayotte marks a historic step towards digital asset acceptance. The measure creates the first official Strategic Bitcoin Reserve for the country by letting the state fund Bitcoin and other digital assets up to 5% of its public monies.
Bitcoin answered with a 2.22% increase, closing at about $96,800. The action establishes New Hampshire as a crypto-friendly state and may motivate others, including North Carolina, Texas, and Arizona, to seek like laws. With time, this might greatly increase long-term price support for Bitcoin and general acceptance. Governor Ayotte tweeted: “Once more, first in the nation is New Hampshire! Just approved a new legislation allowing our state to fund precious metals and cryptocurrencies.”
Bitcoin Price Forecast: Will it drop back to $90K or break $100K?
Bitcoin recovered optimistic momentum this week after being turned down at the $97,000 barrier mark last Friday and dropping about 2.9% over the weekend. By Wednesday, it was once more moving toward the next critical obstacle at $97,700. Should Bitcoin break and rise beyond $97,700 daily, it may keep on toward the psychological mark of $100,000. But failing to break through might cause a downturn, maybe retesting support near $90,000.
Currently ranking at 65, the Relative Strength Index (RSI) shows upward momentum. Nevertheless, the MACD indicator shows indications of market uncertainty since the lines coiling together suggest a possible change in either direction.
Bitcoin at the Core
Bitcoin stays at the core of market speculation even as fast-paced global economic events—from trade discussions to central bank decisions—are under development. Whether your level of experience with cryptocurrencies is new or seasoned, keeping informed is essential.
