Bitcoin Price Awaits Key US Federal Reserve Decision
Bitcoin (BTC) faces an important week as the US Federal Reserve plans to announce its monetary policy. The FOMC meeting on Wednesday is the main event that could impact Bitcoin’s price. Traders expect the Fed’s guidance on inflation and interest rates to cause market moves. BTC is near a strong resistance level, making this week critical for price direction.
Market Volatility Expected Around Fed Announcement
Bitcoin began the week with a slight gain, staying above $92,000. The Fed is expected to cut interest rates by 0.25%, despite ongoing inflation concerns. K33 Research says this FOMC meeting is the most important market event for the week. The market sees an 89.4% chance of a rate cut but remains uncertain due to mixed signals from Fed Chair Jerome Powell last month.
Bitcoin’s recent price moves show high volatility, with daily swings increasing. Low trading activity and weak momentum add to the choppy market conditions. Futures data from CME shows stable open interest but very low volatility in daily fluctuations. This quiet state could end with a strong directional move if trading picks up soon.
Institutional Demand and Bitcoin Price Outlook
- Spot Bitcoin ETFs in the US saw a small inflow of $151.74 million on Tuesday.
- This followed a $60.48 million outflow on Monday, showing slight recovery in institutional interest.
- For Bitcoin’s rally to continue, ETF inflows need to grow stronger.
Bitcoin briefly tested the $94,253 resistance level but did not close above it on Tuesday. If BTC closes higher than this level, it may rise next toward $100,000. Technical indicators suggest bearish pressure is weakening while bullish momentum is building. However, if BTC falls, support near $85,569 could hold the price from deeper declines.
