Bitcoin is trading around $94,732 today, up nearly 0.5% from the previous day, as investors brace for the upcoming U.S. Federal Reserve interest rate decision. Institutional inflows remain strong, suggesting confidence in a longer-term bullish trajectory.
Market Correction or Healthy Pullback?
After reaching a local high above $97,500 earlier this month, Bitcoin has pulled back to the $94K zone. Today’s session saw a low of $93,550 and a high of $94,804.
Source: Tradingview
This minor retracement comes amid broader market caution as the Federal Reserve prepares to announce its next move on interest rates. While inflation has shown signs of cooling, traders remain wary of a potential hawkish stance, which could affect liquidity in risk-on assets like crypto.
ETF Inflows Remain Resilient
Despite the price dip, Bitcoin spot ETFs are still seeing robust institutional demand. On May 4th, total inflows hit $674.9 million, according to Farside Investors and SosoValue.
Notably, BlackRock’s iShares Bitcoin ETF (IBIT) led the pack once again, reinforcing its dominance among U.S.-listed spot ETFs. This trend signals that large investors are still accumulating during dips rather than exiting the market.
“While short-term price volatility remains, ETF inflows show continued confidence in Bitcoin’s long-term value proposition,” noted Farside in its daily report.
Futures Hold $100K Expectations
Meanwhile, the March 2026 Deribit Bitcoin Futures are holding steady at $100,811, reflecting sustained bullish sentiment. The annualized basis rate sits at a healthy 7.42%, further underscoring the appetite for leveraged long exposure.
These elevated futures prices are often seen as leading indicators of institutional optimism, especially when they diverge from spot prices during periods of short-term uncertainty.
Macro Backdrop: All Eyes on the Fed
Bitcoin is not the only asset feeling the heat. Gold, Ethereum, and silver also recorded small declines, while crude oil took a sharper 5.34% dip. On the flip side, equity markets remained buoyant, with the S&P 500 and Nasdaq both closing higher.
The Fed’s interest rate announcement later this week will likely set the tone for the next Bitcoin move. A dovish surprise could reignite momentum and send BTC back toward its $100K resistance zone. Conversely, a more hawkish signal may increase short-term pressure.
Final Thoughts
Bitcoin’s slip below $95K may appear discouraging on the surface, but underlying indicators paint a more nuanced picture. With over $675 million in ETF inflows, strong futures pricing, and a resilient macro narrative, the bullish case remains intact — even as volatility lingers.
As the week unfolds, the crypto market’s reaction to the Fed’s tone will be key. If institutional conviction holds firm, today’s dip could be remembered as just another healthy correction in an ongoing uptrend.
