Bitcoin News Today: FOMC meeting sparks crypto surge as Bitcoin consolidation hints at 400% altcoin gains

The Federal Open Market Committee (FOMC) meeting has drawn intense scrutiny as analysts debate its potential influence on Bitcoin, Ethereum, and XRP. Market commentator CryptoinsightUK highlighted that Bitcoin (BTC/USD) has been consolidating within a narrow range for weeks, a pattern historically observed before significant upward moves. This phase, lasting 60–240 days in prior cycles, is framed as an accumulation period ahead of a breakout driven by macroeconomic tailwinds and negative sentiment in the market [1]. The analyst emphasized that Bitcoin’s dominance over altcoins appears to be peaking, a technical signal often linked to capital rotation into smaller cryptocurrencies [1].

Ethereum (ETH/USD) is positioned near critical resistance levels, with the analyst noting that proximity to “overhead liquidity” typically triggers decisive price action. A break above these levels could occur without a meaningful pullback, particularly if the Fed adopts dovish policy signals during the FOMC meeting [1]. The broader crypto market, with Bitcoin’s market cap nearing $2.5 trillion and total crypto capitalization approaching $10 trillion, is seen as ripe for a surge in altcoin performance. If Bitcoin’s price doubles from current levels, capital reallocation could drive altcoins to fourfold gains, assuming stable dominance metrics [1].

Political dynamics are complicating the outlook. The evolving relationship between U.S. President Donald Trump and Federal Reserve Chair Jerome Powell has raised speculation about policy shifts. Trump’s recent shift from criticizing Powell as “an idiot” to praising him as “a good man” underscores potential political pressures on monetary policy. Analysts suggest such pressures could accelerate accommodative measures, indirectly benefiting risk assets like cryptocurrencies [1].

The analyst’s allocation strategy reflects a bullish thesis, with 95% of their portfolio in XRP (XRP/USD), targeting a post-breakout move to $8–$15. Dogecoin (DOGE/USD) is also viewed as a tactical play, aiming for $1.14–$1.17 amid expected retail inflows [1]. Despite ongoing consolidation, the analyst insists the “calm before the storm” is already unfolding, citing under-positioning and negative sentiment as catalysts for rapid upward momentum if the FOMC signals prolonged low-rate environments [1].

The discussion underscores the speculative nature of these positions, with outcomes hinging on the Fed’s data-driven decisions and their translation into market sentiment. While the analyst’s forecasts hinge on macroeconomic and political narratives, actual results will depend on the FOMC’s stance on inflation and interest rates, which remain uncertain ahead of the meeting [1].

Sources:

[1] Benzinga, FOMC Meeting Preview: Will Jerome Powell Accelerate The Bitcoin, Ethereum, XRP Bull Run? (https://www.benzinga.com/crypto/cryptocurrency/25/07/46699964/fomc-meeting-preview-will-jerome-powell-accelerate-the-bitcoin-ethereum-xrp-bull-run)

[2] Yahoo Finance, Bitcoin USD (BTC-USD) Latest Stock News & Headlines (https://finance.yahoo.com/quote/BTC-USD/news/)

[3] FXEmpire, Bitcoin (BTC) Price Forecasts, Predictions & News (https://www.fxempire.com/crypto/bitcoin/news)

[4] FXEmpire, XRP (XRP) Price Forecasts, Predictions & News (https://www.fxempire.com/crypto/ripple/news)

[5] CoinGecko, XRP to KRW: XRP Price in South Korean Won (https://www.coingecko.com/en/coins/xrp/krw)

[6] NewsNow, Crypto News Today | Cryptocurrency News (https://www.newsnow.co.uk/h/Business+&+Finance/Cryptocurrencies)

[7] Benzinga, Top Stories - Latest News and breaking headlines (https://www.benzinga.com/top-stories)