Bitcoin Hovers Near $100K Ahead of Fed Rate Decision

Bitcoin Holds Steady Around $100K Ahead of Fed Interest Rate Decision; WIF, UNI, TAO See Gains

Bitcoin traded in a tight range today as investors braced for volatility ahead of the FOMC meeting that could provide fresh signals on interest rate policy and economic outlook. The overall cryptocurrency market cap dipped below $3.6 trillion for the third time this month and was down 2.53% in the past 24 hours. Bitcoin dominance continued to rise throughout the day to 58.5% as the subdued performance was seen across the altcoin market with only a few of the top tokens in the green when writing.

The crypto fear and greed index dropped three points from the previous day to 50, which indicates a lack of confidence in the market. Bitcoin traded within a tight range between $100,272 – $103,541, with the $100,000 level currently acting as a crucial psychological support level. The bellwether crypto’s future direction will be greatly influenced by the Federal Reserve’s interest rate decision later today. Traders are on edge, as any shift in policy could set the tone for Bitcoin’s next move.

If the Fed maintains its current stance and keeps rates steady, as widely expected, Bitcoin’s reaction may remain muted in the short term. While a neutral policy signals stability, it also keeps liquidity conditions unchanged, meaning Bitcoin could continue trading in a tight range unless new catalysts emerge. On the other hand, a more hawkish stance—hinting at future rate hikes or keeping rates elevated for longer—could weigh on Bitcoin’s price. A stronger dollar typically means risk asset classes like cryptocurrencies are less attractive to investors. As such, it could trigger some downside pressure as investors rotate funds into safer, yield-bearing assets like U.S. Treasuries and money market funds.

Conversely, a dovish tone from the Fed helps bulls push Bitcoin into price discovery mode as it currently trades a little 6% shy of its all-time high when writing. Lower interest rates generally lead to increased risk appetite, encouraging capital to flow into assets like Bitcoin. According to CME’s FedWatch tool, the regulator is expected to keep interest rates unchanged with a 99.5% chance.

However, traders must note that