FOMC expected to hold rates at 4.25%\u20134.50%, CME tool shows 95.6% odds.
\nSwissblock flags $97K\u2013$98.5K as key resistance zone.
\nPowell\u2019s comments could tilt Bitcoin towards breakout or correction.<\/p>\n
Bitcoin is trading just below $94,000 as investors prepare for Wednesday\u2019s Federal Open Market Committee (FOMC) meeting and Jerome Powell\u2019s post-meeting press conference.<\/p>\n\n
Source: CoinMarketCap<\/a><\/p>\n The Fed is widely expected to keep its benchmark interest rate steady at 4.25%\u20134.50%, with CME FedWatch Tool data showing a 95.6% probability of a rate hold.<\/p>\n Despite this consensus, traders are bracing for volatility triggered by Powell\u2019s comments on the economic outlook, inflation, and rate trajectory, which could sway risk sentiment across digital assets.<\/p>\n Market participants are especially focused on forward guidance, as recent economic data and geopolitical tensions have clouded expectations for rate cuts later this year.<\/p>\n Bitcoin\u2019s recent sideways movement reflects a cautious market mood.<\/p>\n ETF inflows have cooled, and leverage appears to be winding down as traders await clarity.<\/p>\n Analysts at Swissblock describe the environment as a \u201cbattle of resistance\u201d and note that high open interest and negative funding rates point to intensified bearish bets.<\/p>\n They flag the $97,000\u2013$98,500 range as a critical resistance zone.<\/p>\n A break above could trigger short liquidations, but a failed rally might trap bullish traders if momentum fades.<\/p>\n Liquidation data also supports this tension. As price hovers within a tight range, derivatives traders appear to be betting on a volatile move in either direction.<\/p>\n Risk appetite has cooled, but significant positioning remains open, suggesting market participants are preparing for a breakout or breakdown, depending on Powell\u2019s tone.<\/p>\n While no change in rates is expected this week, traders are looking for hints on the Fed\u2019s stance for June and beyond.<\/p>\n In previous meetings, Powell\u2019s words have caused major swings in crypto markets.<\/p>\n December 2023 saw a hawkish turn that led to a broad sell-off in risk assets, and some fear that a repeat could materialise if Powell signals further tightening or ignores recent signs of economic slowdown.<\/p>\n Market sentiment has been dampened by soft GDP data and renewed trade tensions with China.<\/p>\n The impact of President Donald Trump\u2019s recent tariff rhetoric has raised concerns that rate cuts previously expected in June may now be delayed.<\/p>\n Veteran trader Mathew Dixon noted that expectations for a June cut have already flipped to a hold, further pressuring sentiment.<\/p>\n Gold\u2019s recent rally is also seen as a sign of risk-off positioning. According to analysts, this suggests investors are hedging against potential shocks from the Fed\u2019s announcement.<\/p>\n Bitcoin is currently consolidating near local support as traders weigh macroeconomic uncertainty.<\/p>\n Degens, or high-risk crypto traders, are reportedly building long positions, anticipating a price move.<\/p>\n However, some analysts warn that market makers may push prices lower to trigger stop losses before a potential upside.<\/p>\n Swissblock\u2019s analysis supports this view, suggesting that any breakout could be preceded by a final liquidity sweep.<\/p>\n Historical data offers mixed signals. Three of the last five FOMC announcements have coincided with Bitcoin rallies, but this week\u2019s event<\/a> is clouded by more complex macro conditions.<\/p>\n The unresolved US-China tensions, weaker consumer demand, and political pressure around inflation all weigh heavily on market sentiment.<\/p>\n BitMEX co-founder Arthur Hayes has previously argued that a shift back to quantitative easing could ignite a parabolic Bitcoin rally.<\/p>\n But in the absence of dovish signals, Bitcoin could retest recent lows in a sharp pullback.<\/p>\n With no clear catalyst either way, the market remains delicately balanced, awaiting Powell\u2019s next move.<\/p>\n The post Bitcoin traders brace for FOMC meeting as volatility looms<\/a> appeared first on CoinJournal<\/a>.<\/p>","protected":false},"excerpt":{"rendered":" FOMC expected to hold rates at 4.25%\u20134.50%, CME tool shows 95.6% odds. Swissblock flags $97K\u2013$98.5K as key resistance zone. Powell\u2019s comments could tilt Bitcoin towards breakout or correction. Bitcoin is trading just below $94,000 as investors prepare for Wednesday\u2019s Federal Open Market Committee (FOMC) meeting and Jerome Powell\u2019s post-meeting press conference. Source: CoinMarketCap The Fed […]<\/p>\n","protected":false},"author":0,"featured_media":3220,"comment_status":"","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"tdm_status":"","tdm_grid_status":"","footnotes":""},"categories":[1],"tags":[],"class_list":{"0":"post-3219","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-bitcoin"},"acf":[],"_links":{"self":[{"href":"https:\/\/digkrypton.com\/index.php\/wp-json\/wp\/v2\/posts\/3219","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/digkrypton.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/digkrypton.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"replies":[{"embeddable":true,"href":"https:\/\/digkrypton.com\/index.php\/wp-json\/wp\/v2\/comments?post=3219"}],"version-history":[{"count":0,"href":"https:\/\/digkrypton.com\/index.php\/wp-json\/wp\/v2\/posts\/3219\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/digkrypton.com\/index.php\/wp-json\/wp\/v2\/media\/3220"}],"wp:attachment":[{"href":"https:\/\/digkrypton.com\/index.php\/wp-json\/wp\/v2\/media?parent=3219"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/digkrypton.com\/index.php\/wp-json\/wp\/v2\/categories?post=3219"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/digkrypton.com\/index.php\/wp-json\/wp\/v2\/tags?post=3219"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}Trading volume dips, ETF inflows slow ahead of Fed event<\/h2>\n
Powell\u2019s guidance could determine market direction<\/h2>\n
Bitcoin price action hinges on macro signals<\/h2>\n