The U.S. central bank also increased estimates of coming inflation to 3% from the 2.2% projection in March, largely due to transitory factors.
BTC faces slowing momentum as buyers struggled at resistance. Upside limited with lower support at $34K.
However, the short-term trend is improving as the daily chart advances from oversold levels.
Bitcoin tests $40K following positive comments from Tesla's CEO Elon Musk and hedge fund manager Paul Tudor Jones.
Bitcoin is attempting to break out of a monthslong range but faces resistance at $40K-$42K.
BTC held minor support along a series of lower price highs. Upside appears limited going into the weekend.
Meme stocks are rising as BTC stabilizes after a volatile May.
The short-term trend is improving after a series of lower price highs since May.
A death cross occurs when the 50-day moving average crosses below the 200-day moving average.
Oversold readings suggest limited upside for BTC towards $36K.
The cryptocurrency is up from a low price of about $31,000.
"This traditionally bullish signal should be interpreted with caution and in the context of other indicators," one analyst said.
BTC will need to remain above $30,000 to avoid entering bear market territory.
El Salvador's announcement was largely ignored by markets, possibly due to the country's small size, analysts say.
BTC remains in a tight trading range as the uptrend weakens. Upside appears limited this week.