Bitcoin Holds Steady Near $113,000 Ahead of Key Events
Bitcoin (BTC) remains stable around $113,000 on Wednesday as traders wait for important news. The US Federal Reserve (Fed) will announce its interest rate decision soon. Major tech companies like Microsoft, Alphabet, Meta, Apple, and Amazon will report earnings. These events could cause big price changes in both traditional and crypto markets.
US-listed spot Bitcoin ETFs saw strong demand on Tuesday, with $202.48 million in new investments. This marks the fourth day in a row with positive inflows, showing growing interest in Bitcoin investment products.
Fed Rate Cut May Increase Bitcoin Volatility
The Federal Open Market Committee (FOMC) is expected to cut interest rates by 25 basis points on Wednesday. This would lower the federal funds rate to between 3.75% and 4.00%. The Fed aims to support the slowing economy and address labor market worries.
Officials may also slow or pause the reduction of their balance sheet to keep markets stable. This decision could lead to more volatility for riskier assets like Bitcoin.
A recent US government shutdown has delayed important inflation and employment reports. This makes it harder for the Fed to assess current economic conditions. A K33 analyst said this “adds uncertainty to the Fed’s forward guidance” and may be a key topic in the Fed’s press conference.
Currently, markets see a 98% chance of the 25-bps cut on Wednesday. They also expect another cut on December 10 with 94.9% probability.
Big Tech Earnings Reports Could Impact Markets
Along with the Fed’s decision, major tech companies will release earnings. Microsoft, Alphabet, and Meta report on Wednesday. Apple and Amazon will report on Thursday. Together, they make up nearly 25% of the S&P 500 market value. Their earnings could strongly affect market trends.
K33 Research says analysts are mostly optimistic. They expect growth driven by AI and cloud computing. However, there are cautious views on profit margins, spending, and economic risks.
Bitcoin’s price is increasingly linked to US tech stocks. The 30-day correlation between Bitcoin and the Nasdaq hit 0.53, the highest since August. This means earnings and Fed decisions could strongly move Bitcoin prices.
Bitcoin’s current market shows mixed signals. Its 7-day average volatility eased slightly to 1.6%. Still, price swings remain large. On October 21, Bitcoin rose 5% but gave up all gains within 24 hours. This rare pattern signals low liquidity and usually happens near price extremes. Traders should watch for more volatility soon.
Institutional Demand for Bitcoin Remains Strong
US-listed spot Bitcoin ETFs continue to attract investments. Tuesday saw inflows of $202.48 million, extending a four-day positive streak.
Strive, a Bitcoin treasury and asset management firm, bought 72 BTC on Tuesday. This raises its total holdings to 5,958 BTC, highlighting steady corporate confidence in Bitcoin.
Bitcoin Price Forecast
Bitcoin recently faced resistance near $115,137, a key Fibonacci level. It dropped below the 50-day moving average at $113,336 but found support around $113,100.
If Bitcoin holds above the ascending trendline and breaks above $115,137, it may rise toward $120,000.
The Relative Strength Index (RSI) shows indecision, hovering near 50. The MACD indicator showed a bullish crossover on Sunday, supporting a possible price rise.
If Bitcoin falls further, it may test support near $106,453, another important Fibonacci level.
