Bitcoin Surges 4% Ahead of Federal Reserve Policy Decision

Bitcoin (BTC) has shown a rebound during the current trading session as global markets recover ahead of the US Federal Reserve’s Federal Open Market Policy meeting. The committee is scheduled to announce its latest policy decision at 2 PM IST. This rebound has seen the flagship cryptocurrency rise by nearly 4%, trading at approximately $84,270.

This is the second Federal Reserve meeting since Donald Trump returned to the White House, with investors closely monitoring any potential changes in the rate trajectory by Fed Chair Jerome Powell. The Bank of Korea has recently stated that it is not interested in acquiring Bitcoin (BTC) due to its high volatility. The bank's representative described BTC’s price movements as unpredictable, stating that the potential for a price decline could not guarantee a stable value in Korean Won at any given moment. The bank also cited the reluctance of other countries to adopt Bitcoin as a national reserve asset, noting that while Brazil and the Czech Republic had positive experiences, the European Central Bank, Switzerland, and Japan had given negative assessments.

Executive Director of Trump’s Presidential Council on Digital Assets, Bo Hines, reiterated the White House’s stance on a Bitcoin Reserve and potential future purchases of the asset. President Donald Trump has signed two executive orders to create a digital asset regulatory framework and establish the country’s first Bitcoin reserve. The executive order also authorized an audit of the US’s current BTC holdings and directed officials to use budget-neutral strategies to acquire more Bitcoin, addressing concerns about strain on the national deficit. Hines emphasized the importance of the US "having, retaining, and building" on its digital gold reserves, stating that the administration is actively looking to acquire more BTC.

According to the decentralized on-chain options platform Derive, Bitcoin (BTC) could be gearing up for significant volatility. BTC has traded between $80,000 and $85,000 since March after a significant drop from $100,000 due to various economic factors, including Donald Trump’s tariffs, potential trade wars, recession fears, and the lack of new purchases in the US strategic Bitcoin reserve. Key consolidation metrics have declined to reach monthly lows, but the low volatility could soon give way to price turbulence.

BTC has experienced a sharp jump during the ongoing session, aiming to cross $85,000. Price action has been trading upwards since Tuesday when it fell to a low of $76,642. The price recovered from this level to register an increase of 5.50%, reclaim $80,000, and settle at $82,943. BTC continued to push higher on Wednesday, rising almost 1% and settling at $83,709 despite facing selling pressure. Sellers took control on Thursday as BTC fell over 3% and settled at $81,136, but not before hitting a low of $79,995. Bullish sentiment returned on Friday as markets rallied, resulting in BTC surging past the 200-day SMA, reaching an intraday high of $85,363 before settling at $84,002 after an increase of 3.53%.

Buyers retained control on Saturday as BTC registered a marginal increase and settled at $84,398. However, BTC lost momentum on Sunday, ending the weekend with a drop of over 2%, slipping below the 200-day SMA and settling at $82,611. BTC started the current week positively, rising almost 2% and settling at $84,017. Selling pressure intensified on Tuesday as the price fell to a low of $81,171. It rebounded from this level to settle at $82,728, ultimately registering a decline of 1.53%. The current session sees BTC up over 2% as buyers look to break past the resistance between $84,000 and $85,000. The flagship cryptocurrency is trading at $84,510 at the time of writing. The RSI is just below the neutral zone and pointing upwards, while the MACD is flashing bullish, indicating buyers have the upper hand. If BTC can move past this resistance zone, it could push towards $90,000.