Bitcoin News Today: Bitcoin Flat as Markets Await Fed Rate Hold

Bitcoin’s price remains relatively stable as markets brace for the U.S. Federal Reserve’s decision on interest rates following its two-day meeting. Analysts and the CME FedWatch Tool predict a 97% probability that the Fed will maintain the current rate range of 4.25-4.50%, despite political pressures from U.S. President Donald Trump, who has publicly criticized Federal Reserve Chairman Jerome Powell and threatened to resign if rates are not cut [1]. The central bank’s decision is expected to be influenced by persistent inflation, which currently stands at 2.7%, above the Fed’s 2.0% target [1].

Bitcoin traded at $117,607.17 as of the latest report, reflecting a 0.55% decline in the past 24 hours and a 1.21% drop for the week. Over the previous 24 hours, the cryptocurrency fluctuated between $117,441.44 and $119,273.87, according to Coinmarketcap data [1]. The subdued price movement aligns with broader market expectations of a rate hold, as equity indices showed mixed performance and investors awaited Powell’s post-meeting press conference [1].

Market metrics indicate cautious trading activity. The 24-hour trading volume for Bitcoin increased by 4.26% to $66.58 billion, while the overall market capitalization dipped 0.59% to $2.34 trillion [1]. Bitcoin’s dominance in the cryptocurrency market rose slightly by 0.22%, reaching 61.53% [1]. Futures data from Coinglass reveals a 2.55% decrease in open interest to $83.60 billion over the same period, with relatively low liquidations totaling $3.56 million, of which $3.38 million was attributed to long positions [1].

Powell’s steadfast approach to maintaining rates contrasts with Trump’s aggressive stance, which has escalated since the president’s recent visit to the Fed’s headquarters. During the visit, Trump criticized Powell for overseeing a $2.5 billion renovation project at the central bank’s facilities [1]. This political tension adds an element of uncertainty to the Fed’s decision, though the majority of market participants appear to have priced in a rate hold.

The central bank’s final decision is anticipated to influence broader financial markets, including equities and cryptocurrencies. While the CME FedWatch Tool and expert consensus suggest a high likelihood of inaction, the outcome of Powell’s press conference and any subsequent policy statements will remain critical for shaping market sentiment in the coming days [1].

Source: [1] Bitcoin Flat as Markets Await Fed Decision (https://api.news.bitcoin.com/wp-json/bcn/v1/post?slug=bitcoin-flat-as-markets-await-fed-decision)