This week in crypto, markets are on edge ahead of tomorrow’s critical Fed decision, which could shape interest rate policy—and the direction of Bitcoin—for months to come. While Bitcoin pulled back slightly after hitting a 10-week high, strong ETF inflows and continued whale accumulation point to solid long-term confidence.
Ethereum is also in the spotlight with its upcoming Pectra upgrade, expected to boost efficiency and network usability. Meanwhile, Bitcoin supply on exchanges continues to shrink, fueling expectations of a supply squeeze. And in France, a shocking crypto kidnapping highlights the growing need for personal security in the industry.
Let’s dive into the most important crypto developments this week in our Weekly Crypto News.
After 10-Week High, Bitcoin Finds Support at 82.500 €
Bitcoin traded in a relatively narrow range between 83.000 € (94.000 $) and 86.000 € (97.300 $) for most of the week, showing resilience despite mixed signals from the economy. It briefly dropped to 82.000 € (92.910 $) after new U.S. GDP data revealed a 0.3% contraction in the first quarter and showed that the economy had shrunk slightly at the start of the year — which sparked recession concerns that can scare investors and cause short-term selling.
After that, Bitcoin quickly recovered and reached a 10-week high of 86.100 € (97.900 $) on May 2, boosted by Donald Trump’s renewed push for the U.S. central bank (Fed) to lower interest rates. This, combined with strong demand from large investors — including ETF inflows and corporate buying — brought back optimism in the market.
Over the weekend, the price dropped again to around 82.500 € (93.500 $) as some traders decided to secure their profits and wait for new economic news. Still, Bitcoin held above this important support level. A lot of buyers had placed orders around this price zone, which helped stop the fall and keep the overall trend strong.
This week, markets are watching the Fed’s upcoming interest rate decision, jobless claims, and earnings reports — all of which are likely to drive short-term volatility.
Fed Meeting This Week: Here’s Why It Matters for Crypto
This week’s biggest topic in global markets is the upcoming U.S. Federal Reserve (Fed) meeting on May 7. The Fed will decide whether to keep interest rates where they are, raise them, or start cutting them. These decisions matter a lot — especially for crypto — because lower interest rates usually make riskier assets like crypto more attractive.
Recently, hopes for a rate cut increased after weak economic data showed that the U.S. economy shrank slightly in the first quarter. Traders are also watching job numbers and inflation reports closely. Just a few days ago, the chances of a rate cut at the next meeting in June jumped from 57% to 60%.
Even US President Donald Trump has added pressure, calling for lower rates. If the Fed were to cut interest rates, that could ignite a rally in riskier markets, including crypto. But despite this, many experts believe the Fed will keep rates unchanged this week and wait for more data in the coming months.
In short: no major surprises are expected, but the tone of the Fed’s comments could influence how Bitcoin moves next. Volatility is expected, and key price levels to watch are $90,000 and $85,000 as support, with $97,000 as a major resistance level.
Bitcoin Looks Undervalued as Supply Drops and Buying Grows
Even as Bitcoin’s price moves, large investors continue to quietly support the market. On April 28, BlackRock’s ETF bought nearly $1 billion worth of Bitcoin — one of its largest single-day purchases since launch. Altogether, more than $4.5 billion flowed into Bitcoin ETFs in just two weeks, signaling strong demand from institutional investors.
At the same time, long-term holders are not selling. Over 63% of all Bitcoin hasn’t moved in years, and the amount of Bitcoin held on exchanges continues to decline. This usually means fewer coins are available for sale — a condition that can support higher prices. According to analysts, the current “illiquid supply shock” level is still 16% below its peak in 2017, suggesting there’s still room for growth.
Meanwhile, Strategy (formerly MicroStrategy) has increased its holdings again and now owns more than 555,450 BTC.
Overall, many market analysts believe Bitcoin remains undervalued and well-positioned to grow further — especially if the broader economic environment remains favorable.
Ethereum upgrade could help ETH recover
Ethereum is about to activate a major upgrade called Pectra, which is expected to improve the network and possibly boost the price of ETH. The update will make staking more efficient and allow users to pay gas fees with other tokens — changes that could attract more users and developers.
Ethereum has fallen behind other top cryptocurrencies in recent months, and its price is still far from its all-time high of 4.870 $. Right now, ETH trades around 1.777 $, which is more than 60% below its previous peak.
However, the current setup shows some similarities to 2019 — the last time ETH was in a long downtrend before jumping 450%. If the Pectra upgrade brings more activity and attention to Ethereum, it could help ETH break out of its current weak trend.
Still, changes like these usually take time to impact the price. But with another upgrade already planned for late 2025 (called Fusaka), Ethereum is clearly focused on long-term growth.
Crypto Kidnapping Case in France – A Reminder About Safety
French police recently rescued the father of a crypto entrepreneur who had been kidnapped near Paris. The kidnappers reportedly demanded nearly €8 million in ransom. Thankfully, the man was freed unharmed during a police raid. This case followed another high-profile incident in January, when the co-founder of Ledger, a major crypto wallet provider, was also kidnapped and later rescued.
While such events remain very rare, they highlight the risks that public figures or well-known crypto holders may face. As crypto adoption grows and wealth increases, so does the importance of personal security.
For everyday investors, this serves as a reminder to keep crypto holdings private, store assets securely (such as in cold wallets), and avoid oversharing personal financial details online or in public conversations.
The crypto market continues to move in response to global events, big decisions, and growing institutional demand. As the Fed meeting approaches and Ethereum’s Pectra upgrade nears, it’s a great time to stay informed, review your strategy, and keep your assets safe. We’ll be back next Monday with more updates — until then, stay sharp and trade smart.
