Bitcoin Dips After FOMC Rally, but $100K Bet Gains Strength
Bitcoin (BTC) and the broader crypto market saw a 3% pullback on Friday, as traders locked in profits following Thursday’s FOMC-fueled surge. Despite the short-term drop, derivatives data suggests a rising probability of BTC hitting $100K in the coming months.
Market Overview
- Bitcoin slipped from $86,000 to below $84,000, dragging the crypto market’s total capitalization down by 3.2% in 24 hours.
- Ethereum (ETH) lost its footing below $2,000, while Solana (SOL) dropped 5%.
- XRP pared back some of its recent 10% surge, now up 4.8% on a weekly basis.
- BNB outperformed, posting an 8% weekly gain.
- Tron (TRX) and Toncoin (TON) stood out as the only major gainers, both up 2%.
TRX gained momentum following its debut on the Solana blockchain, while TON surged after venture capital firms injected over $400 million into the project.
FOMC’s Impact on Bitcoin
Wednesday’s Federal Open Market Committee (FOMC) meeting initially propelled BTC past $85,000, as traders interpreted the Fed’s plan to slow quantitative tightening in April as an early sign of monetary easing.
- QCP Capital noted that options traders are now factoring in a more dovish Federal Reserve stance, fueling bullish sentiment.
- Dr. Sean Dawson, head of research at Derive.xyz, revealed that the probability of BTC hitting $100K by June 30 has jumped from 20% to nearly 30% in just one day.
- Meanwhile, ETH’s likelihood of remaining above $2,000 by mid-year has climbed to 50%, up from 40% previously.
Options market trends indicate that 60% of ETH contracts traded in the past 24 hours were bullish calls, while BTC options saw 34% of volume focused on hedging against potential downside.
Key Levels & Market Sentiment
Analyst Alex Kuptsikevich of FxPro stressed the importance of Bitcoin holding the $80,000 support level to sustain bullish momentum.
- The crypto market’s total capitalization remains below its 200-day moving average of $2.9 trillion, a key threshold that, if surpassed, could trigger fresh buying.
- However, failure to maintain support could lead to further short-term corrections, allowing bears to regain control.
What’s Next for Bitcoin?
Despite profit-taking and short-term volatility, Bitcoin’s long-term outlook remains optimistic, with increasing market confidence in a potential six-figure price milestone. Investors will now watch for institutional inflows and macroeconomic shifts to gauge BTC’s next big move.
