Bitcoin Faces Resistance at $97K as Cardano’s ADA Leads Market Rally Ahead of FOMC

Bitcoin experiences a price swing amid rising tensions between India and Pakistan and anticipation of a U.S.-China trade discussion.Cardano’s ADA leads gains among major cryptocurrencies, while traders brace for potential volatility ahead of the FOMC meeting.Heightened geopolitical uncertainty stemming from escalating tensions and the upcoming Federal Open Market Committee (FOMC) meeting have injected volatility into the cryptocurrency market. Bitcoin briefly surpassed 97,000 before settling at $96,500, while Cardano demonstrated significant gains, outperforming other major cryptocurrencies.Market OverviewBitcoin’s price movement was influenced by two key factors: escalating tensions between India and Pakistan and a planned U.S.-China trade discussion. Initial optimism surrounding the trade meeting briefly boosted risk assets; however, this sentiment was quickly overshadowed by India’s Operation Sindoor, which heightened regional tensions. This caused Bitcoin’s price to retreat from its peak. “Volatility in the markets is soaring as bitcoin surges to $97K from the intensifying conflict between India and Pakistan,” Nick Ruck, director at LVRG Research. He added that geopolitical uncertainty and macroeconomic volatility may send Bitcoin to new highs as a hedge against greater market risks.All eyes will be on the US Federal Reserve’s monetary policy announcement today, but Powell’s news conference will be the most attention-grabbing event. The US Fed’s FOMC meeting will take place on May 6 and 7. On May 7, at 2 p.m. ET. Fed chief Jerome Powell is most likely to keep rates unchanged at 4.25%- 4.5% in the meeting.Meanwhile, ADA led gains among major cryptocurrencies, experiencing a 3% increase over the past 24 hours. Other cryptocurrencies, including Dogecoin (DOGE), XRP, BNB Chain’s BNB, and ether (ETH), saw smaller gains of less than 2%. Legacy tokens like Bitcoin Cash (BCH) and Litecoin (LTC) showed more substantial increases, surging by as much as 10%. Analysts note that Bitcoin’s recent price surge has been accompanied by a rise in active addresses, which some interpret as a sign of increased network activity and potential future volatility. Ryan Lee, chief analyst at Bitget Research, noted, “Bitcoin’s recent rally to the $87,500–$97,500 range (now at a 6-month high) points to rising demand and renewed network activity.” Lee suggests that this surge supports a bullish outlook for a potential breakout toward $100,000, pending confirmation from other indicators. Bitcoin’s recent breakout has sparked optimism among traders, with many eyeing the $100,000 mark as a near-term target. However, historical trends urge caution as the market enters May, a month often associated with weaker performance. The well-known adage “Sell in May and go away” reflects a seasonal pattern of low returns and increased volatility in financial markets from May through October. Bitcoin, which has shown a tendency to mirror traditional equity market behaviour, may also be susceptible to this seasonal softness.Looking ahead, traders are advised to monitor macroeconomic conditions, Bitcoin dominance, and rising hash rates. Ethereum is currently trading at 1844, up 2% in the last 24 hours, lagging behind Bitcoin’s momentum. Bitcoin is currently trading at $96,936, up 3% in the last 24 hours. The post Bitcoin Faces Resistance at $97K as Cardano’s ADA Leads Market Rally Ahead of FOMC appeared first on ETHNews.