Bitcoin Price Settles at $105K Ahead of US Fed’s Interest Rate Decision

Bitcoin’s price has settled at $105K after fluctuating due to geopolitical tensions. A fresh wave of volatility is expected with the US Federal Reserve set to announce its interest rate decision. The altcoin market mirrors Bitcoin’s turmoil with most coins in the red, and the total crypto market cap has dropped significantly.

The price of Bitcoin has steadied at around $105,000, amidst ongoing turbulence linked to geopolitical tensions in the Middle East. This calm comes just ahead of a critical day where the US Federal Reserve is expected to announce its interest rate decision, which has many anticipating no immediate changes.

Bitcoin experienced a wild ride just days ago after Israel’s unexpected strike against Iran last Friday. The cryptocurrency market reacted with a significant fallout, causing Bitcoin’s price to nosedive from $108,400 to below $103,000 almost instantly. Despite ongoing missile exchanges between the two nations, Bitcoin managed to claw its way back during the weekend and showed some bullish momentum at the start of the business week.

On Monday evening into Tuesday morning, Bitcoin peaked at approximately $109,000, a multi-day high. However, this surge was short-lived as the market turned bearish once again. Following escalating tensions—marked by former President Trump’s aggressive comments towards Iran—Bitcoin plummeted again, dipping below $103,500 just yesterday.

It did recover slightly, even reaching about $105,600 for a brief period but is now stabilizing just below $105,000 again. The current market cap has teetered below $2.090 trillion, with Bitcoin’s market dominance sitting close to 62%. This is significant as the volatility is likely to rise later today with the Fed’s forthcoming announcement.

In the world of altcoins, the situation isn’t much better. Many have faced downward pressure over the last 24 hours. Ethereum is nearing the crucial threshold of $2,500 after yet another dip, while XRP has slumped to $2.15, marking a 3% decrease. Other cryptocurrencies like SOL, HYPE, ADA, LINK, UNI, and PEPE show similar trends, with SUI taking a harder hit of over 6%.

In the top 100 altcoins, a few are managing to defy the broader trend, with KAIA leading at a 5% gain, followed by SEI and NEXO both at 2%. On the flip side, cryptocurrencies like SKY, FARTCOIN, TKX, and VIRTUAL have suffered the worst losses during this period.

Overall, the total cryptocurrency market capitalisation has taken another hit, decreasing by $60 billion in just one day, now totalling approximately $3.380 trillion. We continue to watch the market closely as events unfold and the impacts of the Federal Reserve’s decisions become clear.