Bitcoin holds above $100,000, nears $105,000 as investors await FOMC meeting.
After a 3% decline Tuesday afternoon, Bitcoin quickly regained momentum, reflecting cautious optimism among investors ahead of upcoming monetary policy decisions.
Analysts expect the Federal Reserve to keep interest rates at 4.25%-4.5%, with the CME FedWatch tool showing a 97.3% chance of no change.
Still, markets are awaiting Fed Chairman Jerome Powell’s comments, which could impact Bitcoin and cryptocurrencies.
The cryptocurrency market has been volatile this week, with the market falling 8% on Monday morning after news of a Chinese AI model called DeepSeek, which is expected to compete with OpenAI’s GPT-4o at a lower cost.
The announcement triggered a massive sell-off, wiping out $1 trillion in global market value, with Nvidia shares falling more than 20% before recovering.
Bitcoin fell to $98,000 on Monday before rallying to $104,000 on Tuesday morning, settling above $100,000 at press time.
Analyst Gilley commented on the market’s performance, noting that the overall trend remains positive despite short-term volatility, adding:
The long-term charts look good.
The Fed meeting is coming up, which could bring volatility, but it’s best not to focus on short-term moves.
Traders are now awaiting Powell’s comments to see where Bitcoin and the broader financial markets are headed next.
