Bitcoin Dominance Hits 65% for the First Time in 4 Years Before Fed Rate Decision

# Bitcoin (BTC) Soars to $93,500 as Fed Rate Announcement Nears Bitcoin (BTC) is trading near $93,500, drawing significant attention as the U.S. Federal Reserve's interest rate decision approaches. Cointelegraph reports that Bitcoin started the first week of May on a strong note, rebounding successfully after a weekly close on May 4. The Federal Open Market Committee (FOMC) meeting on May 7 (May 8, 4 a.m. KST) is a pivotal economic event this week. Federal Reserve Chairman Jerome Powell is expected to issue statements that could significantly impact markets. The prevailing market consensus suggests that the federal funds rate will remain between 4.25%-4.5%. According to data from the Chicago Mercantile Exchange (CME) group, the probability of a May rate cut is only 5.2%. # Bitcoin’s Market Dominance Hits Four-Year High Bitcoin’s market dominance has climbed to 65%, its highest in four years, signaling a capital shift from altcoins to Bitcoin. The market value of the altcoin sector has decreased sharply, dropping from $1.13 trillion between January and April to $817 billion—a $300 billion decline. # Bitcoin Targets Liquidity Zones and Bullish Scenarios Bitcoin is currently trading at $93,500, eyeing critical liquidity clusters around $96,420. Notable trader CripNuevo has outlined two bullish scenarios: one aiming for a new peak at $98,000, and another establishing support at the 50-day moving average. From a technical standpoint, Bitcoin is consolidating within a narrow range below the $95,000 resistance level, which is linked to its March highs. Breaking this resistance will be a key indicator of further momentum. Bitcoin has bounced back by 24% since dipping to $74,000 in early April, recovering toward its previous highs. # Fed Rate Decision: A Crucial Moment Amid Economic Uncertainty The Fed’s upcoming rate decision is set against a backdrop of economic uncertainty and recession fears. On April 16, Powell emphasized the need for patience as "clearer economic trends emerge," describing former President Trump’s tariff policies as a "fundamental shift" that could influence inflation and employment metrics. Traders are identifying the $91,500-$92,500 range as a crucial support zone that must hold to maintain Bitcoin’s current momentum. Additionally, jobless claims data and Coinbase earnings reports are noted as potential volatility triggers. # Altcoin Market Decline and Possible Recovery While Bitcoin’s dominance has led to a decline in the altcoin market, analysts predict possible stabilization and recovery for the sector. Historical patterns and technical indicators suggest that altcoins could rebound if key resistance levels are surpassed. Bitcoin has gained over 14% in the past 30 days, currently trading just 6.3% below the $100,000 milestone. On-chain data shows a positive shift in Bitcoin demand for the first time since late February, indicating a potential change in market behavior. Tracy Gin, Chief Operating Officer of global exchange MEXC, anticipates that Bitcoin could rally towards $150,000 this summer if current market conditions continue. She noted that investor sentiment is gradually becoming optimistic. ### Key Takeaways - Bitcoin is trading at $93,500, with Fed rate decisions closely monitored by investors. - Bitcoin's market dominance has surged to 65%, indicating a significant capital reallocation from altcoins. - Traders are focusing on the $95,000 resistance and key liquidity support zones. - Altcoin markets are contracting but show signs of potential recovery based on technical analysis. - Positive market sentiment and on-chain data reflect growing investor confidence.