Bitcoin stabilises near $95,000 as traders anticipate the Fed’s rate decision. After touching $98,000, it has receded slightly, with no change in interest rates expected. Market focus remains on Fed Chair Powell’s statements amidst ongoing political critiques. Overall sentiment appears cautious ahead of critical economic announcements.
Bitcoin (BTC) has been somewhat stagnant, hovering just under the $95,000 mark as of early Monday. After a rather uneventful weekend — where the cryptocurrency surrendered some gains boosted by Friday’s positive US jobs report — traders are now taking a focused stance while awaiting critical macroeconomic data. The world’s largest digital currency had reached a recent high of $98,000, marking a 10-week peak, before retreating slightly.
This week is shaping up to be pivotal, not only for cryptocurrencies but across financial markets too. The Federal Reserve’s two-day meeting begins on Tuesday and analysts widely expect no change in the current interest rates. However, the key aspect to watch is how Fed Chair Jay Powell communicates, whether he suggests that a rate cut might be approaching or maintains a more hawkish outlook. Market participants are feeling the tension surrounding his upcoming statements.
Adding to the intrigue, former President Donald Trump has recently intensified his critiques of the Fed, urging for lower interest rates based on the perceived strength of the economy. Observers are curious whether Powell will actually respond to Trump’s public pressure or stick firmly to the Fed’s set course of action. This public dynamic is sure to keep the financial world on edge.
Turning back to Bitcoin, the price decline over the weekend, albeit minor, has kept it under the all-important psychological threshold of $100,000. Bulls have been eager to reclaim this level since February, yet the market’s recent calm contrasts sharply with the previous week’s volatility, which was marked by political market influences and surprising employment figures.
Currently, Bitcoin has seen a modest gain of about 1.5% this month, but momentum has considerably diminished, and trading volumes are gradually declining. The sentiment among traders feels notably cautious, likely stemming from the impending announcements from the Federal Reserve, as crypto is becoming increasingly correlated with broader macroeconomic movements. The atmosphere appears to lean towards waiting and observing, characteristic of the period leading up to significant central bank decisions.
