Key Takeaways
- Bitcoin rallies past $78,000 after the Fed holds rates steady.
- A $121 million short squeeze fuels the sharp price increase.
- On-chain data shows strengthening spot demand and rising open interest.
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Bitcoin Surges Past $78,000 as Powell Chairs Final Fed Meeting
Bitcoin surged past $78,000 on May 1, 2026, after Federal Reserve Chair Jerome Powell’s final meeting, where the central bank held interest rates at 3.50% to 3.75%, signaling a potential policy shift under incoming chair Kevin Warsh.
"The last time flows showed this kind of persistence was right before the October 2025 peak. Not saying we’re there yet, but it tells you the direction is improving,” Ecoinometrics said in a note, referring to a recent nine-day streak of ETF inflows.
The move was intensified by a significant short squeeze totaling $121 million, according to data from CoinGlass. On-chain data from Velo showed spot cumulative volume delta (CVD) reaching a new high of 11,500 BTC, indicating strong buying pressure. Aggregated open interest also rose 6.64% to 257,000 BTC, pointing to new capital entering the market.
The immediate focus is on the $78,000 to $80,000 range, where $2.1 billion in short positions are at risk of liquidation. With the transition to new Fed leadership on May 15, traders are watching for policy clues from Warsh, whose previous cryptocurrency investments suggest a potentially more favorable regulatory environment.
Institutional activity further supports a bullish outlook. The 30-day change in over-the-counter (OTC) desk balances fell to approximately -20,700 BTC, a level not seen since March 2025, suggesting a reduction in immediately available supply. This coincides with a strong month for Bitcoin exchange-traded funds (ETFs), which attracted $1.97 billion in April, the highest monthly inflow this year.
This article is for informational purposes only and does not constitute investment advice.
