Bitcoin Hovers at $100K Ahead of FOMC Meeting

Bitcoin clings to 100K ahead of tomorrow’s FOMC meeting

Bitcoin is maintaining its position above $100,000 as investors await the Federal Open Market Committee (FOMC) meeting scheduled for tomorrow. The cryptocurrency experienced a 3% correction during Tuesday afternoon but has since recovered, reflecting a cautious optimism among investors. The Federal Reserve is widely expected to keep interest rates steady at 4.25%-4.5%, with a 97.3% probability of no change, according to the CME FedWatch tool.

Markets are cautious about potential hawkish comments from Fed Chair Jerome Powell that could pressure Bitcoin and other risk assets. The crypto market experienced turbulence earlier this week, dropping 8% on Monday morning following news about DeepSeek, a Chinese AI model that demonstrated performance similar to OpenAI’s GPT-4 at lower costs. The announcement triggered a broader market selloff, erasing $1 trillion in global market value, with Nvidia shares falling more than 20% before recovering.

Bitcoin dropped to $98,000 on Monday before climbing to $104,000 early Tuesday. The digital asset was trading just above $100,000 at press time. Crypto analyst Jelle commented on the crypto market’s overall performance, emphasizing its long-term strength despite short-term volatility. “Higher timeframe charts look good. FOMC tomorrow, first one in the new Trump Administration. Should be volatile until then, probably wise to stay off the LTF charts, and ignore the volatility. Don’t get shaken out, boys,” Jelle remarked.

Traders are monitoring Powell’s upcoming remarks for insights that could influence Bitcoin’s trajectory and broader market sentiment.