Bitcoin Approaches $100,000 as Traders Await Fed Interest Rate Decision
Bitcoin is currently testing key resistance levels as traders await the U.S. Federal Reserve's interest rate decision. Economic uncertainty and inflation concerns contribute to market volatility.
Key Points on Bitcoin and Fed Decision
- Bitcoin reached $96,921.96, nearing the $100,000 threshold.
- The market anticipates the Fed will maintain interest rates at 4.33%.
- Fed Chair Jerome Powell's upcoming remarks are critical for Bitcoin's direction.
- Recent economic data shows a 0.3% decline in U.S. GDP and persistent inflation at 3.5%.
- Most economists predict eventual rate cuts, but current data suggests only a 2% chance of a cut today.
Potential Outcomes for Bitcoin
- A dovish stance from the Fed could push Bitcoin above $98,000 and towards all-time highs.
- A hawkish approach may lead to price drops, with support between $92,000 and $94,000.
- Recent activity includes transfers from dormant wallets totaling $325 million ahead of the announcement.
Traders are preparing for increased volatility as the Fed's decision approaches.