Fed Holds Rate Steady as Bitcoin Hovers Near $102K

The Federal Reserve (Fed) is set to hold its first meeting of 2025 on Wednesday, with markets eagerly awaiting signals about future monetary policy. As bitcoin hovers near $102,000 and new immigration policies take effect in the United States, the Fed is expected to maintain current interest rates.

The Federal Open Market Committee (FOMC) is widely anticipated to keep interest rates steady at their current range of 4.25% to 4.50%. This decision follows a 25-basis point rate cut in December, which marked a 100-basis point decline since September 2024. Market participants have largely priced in an unchanged rate decision, with the focus shifting to Fed Chairman Jerome Powell's press conference scheduled for 19:30 UTC on Wednesday.

The meeting comes against the backdrop of President Donald Trump's new immigration policies, which began implementation over the weekend. Early estimates suggest that deportations could affect between one million to ten million individuals currently residing in the United States. Labor market implications of these deportation policies have caught the attention of economic analysts, with Rabobank's Senior Macro Strategist Benjamin Picton noting that removing up to one million workers from the labor force could tighten an already strong job market, potentially creating upward pressure on wages and inflation.

The Treasury Department recently announced that the U.S. had reached its $36 trillion debt ceiling, prompting the implementation of extraordinary measures. One key action involves drawing down the Treasury General Account (TGA), which typically helps ease market liquidity conditions.

Bitcoin's price action has remained relatively stable in anticipation of the Fed meeting, consolidating above $100,000 after briefly dipping below this psychological barrier. The cryptocurrency closed at $102,000 on January 28, with traders watching for potential volatility following Powell's comments. Recent data indicates a moderation in shelter inflation, a key component of the Consumer Price Index. The Labor Department's "all tenant rent" index showed a slowdown to 3.2% growth in the fourth quarter, compared to 3.9% in the previous quarter and 5.5% a year ago.

Technical analysts have identified several key price levels for Bitcoin around the FOMC meeting. Support levels appear around $97,000 and $94,000