Bitcoin’s price stabilises around $97,000, boosted by US-China trade talks. Upcoming Fed interest rate decision poses potential volatility risks. New Hampshire becomes the first US state to create a Strategic Bitcoin Reserve, a move that may encourage other states to follow. If Bitcoin breaks above $97,700, it could rally toward $100,000; otherwise, support at $90,000 may be retested.
Bitcoin’s price is hovering near $97,000 following a recent 2.7% rebound over the past couple of days. There’s a notable sense of optimism in the crypto markets as US and Chinese officials prepare for crucial trade talks this weekend aimed at easing tensions. However, caution is warranted for traders as the Federal Reserve’s (Fed) upcoming interest rate decision might introduce volatility into risky assets like Bitcoin (BTC). The discussions between the US and China are set to commence in Switzerland this Friday, with Vice Premier He Lifeng representing China and US officials Scott Bessent and Jamieson Greer leading the US delegation. This marks the first significant diplomatic engagement since President Trump’s return to office, and while the market is responding positively – Bitcoin has regained the $97,000 mark – experts warn it may take months before any meaningful resolution is achieved.
Adding to the complexity of the situation is the Federal Open Market Committee’s (FOMC) imminent meeting. A K33 Research report indicated considerable volatility is anticipated this week, largely attributed to political pressure on Fed Chair Jerome Powell regarding potential rate cuts. Still, prevailing market sentiment seems to lean towards maintaining rates unchanged within the 4.25% to 4.5% target range, reflecting a cautious stance in light of ongoing tariff disputes. Additionally, Bitcoin appeared to experience low volatility in recent weeks, but that may change soon. Historically, low volatility phases often result in substantial price swings, especially as leveraged positions are adjusted. This week’s FOMC meeting might just be the spark for that volatility shift.
In an interesting turn of events, New Hampshire has officially become the first US state to establish a Strategic Bitcoin Reserve. Governor Kelly Ayotte signed House Bill 302 into law, which permits the state treasurer to allocate up to 5% of public funds into Bitcoin and other digital assets. The news boosted Bitcoin’s value, which surged 2.22% and closed around $96,800 on that day. This pioneering move could set a significant precedent for other states eyeing similar initiatives, potentially impacting Bitcoin’s wider adoption long term.
On the trading front, Bitcoin’s price was initially rejected from a daily resistance level of $97,000 last Friday, leading to a weekend dip of about 2.89%. Yet, as the new week unfolded, Bitcoin began to recover and is closing in on its resistance at $97,700. A successful breach of this level could see Bitcoin rally toward the psychologically significant $100,000 mark. Conversely, if it fails to break through, a decline may lead it to retest a critical support point at $90,000. Current indicators show somewhat mixed signals; while the Relative Strength Index (RSI) suggests a bullish trend – standing at 65, well above its neutral zone – the Moving Average Convergence Divergence (MACD) indicator reflects some trader indecision.
In summary, the Bitcoin market is rife with mixed signals as external factors like US-China trade talks and the Fed’s rate decision loom large. With dynamics shifting rapidly, staying informed is crucial for traders venturing into these volatile waters.
