Bitcoin Drops 1.47% Awaiting Fed Decision

Bitcoin is currently trading at $104,621, with a 1.47% drop over the past 24 hours. The cryptocurrency is facing a crucial support level near the $102,000–$104,000 range. The upcoming U.S. Federal Reserve interest rate decision is expected to significantly influence Bitcoin's price direction. The central bank is anticipated to maintain current interest rates, but the tone of its statement will be closely watched for indications of future policy changes. A dovish tone from the Fed could fuel upside potential for Bitcoin, while a hawkish stance may trigger further declines.

Market analysts have noted that short-term holders are actively selling, while long-term holders remain steady. This behavior underscores the growing uncertainty ahead of the Fed’s decision. On-chain data indicates weakening momentum, but no major breakdown has been observed yet. The Bollinger Band width for Bitcoin has hit a six-month low, signaling potential for an explosive price movement. The Fear & Greed Index has slipped to 48, reflecting neutral sentiment in the market.

Beyond U.S. monetary policy, rising oil prices and geopolitical tensions in the Middle East are adding to market jitters. These external pressures may influence the Fed’s approach, potentially reinforcing a tighter stance. If inflation risks remain elevated, the central bank may choose to delay any rate cuts. Institutions continue to accumulate Bitcoin despite short-term turbulence. Large players like BlackRock are maintaining substantial holdings, while banks such as BBVA recommend modest exposure to Bitcoin and Ethereum for high-net-worth clients.

Analysts advise caution until the Fed statement is released. Bitcoin must hold the $102,000 level to preserve its bullish structure. A drop below $98,300 could reverse the trend, while a breakout above $108,900 may spark a renewed rally. Today’s outcome could define Bitcoin’s path in the weeks ahead, as the market braces for potential volatility following the Fed’s decision.