Bitcoin hesitates under the USD $ 116,000 prior to the rate of fees: all looks in the Fed

By Hannah Pérez

Investors are aware of the rate decision on Wednesday. The Fed is expected to announce the first 2025 cut and the tone will determine the course of the market. Bitcoin could face greater correction or rebound.

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The market awaits the decision of the Federal Reserve of the United States.
The first interest rate cut in 2025 this Wednesday is expected.
The tone of the Fed will determine the course of the market: greater correction or rebound?
Bitcoin slipped under USD $ 116,000 hours before the ad.

The price of Bitcoin (BTC) fell below the USD $ 116,000 this Wednesday, hours before the expected Federal Reserve (Fed) of the United States on interest rates.

The leading cryptocurrency negotiate around USD $ 115,500 At the time of editing, after having reached a maximum of four weeks above the USD $ 117,000 during the early morning (ET time), according to data from Coingcko. Its price is almost 7% below its historical ceiling of USD $ 124,000 conquered last month.

This recent movement reflects the caution of investors while waiting for the FED signals, in a context where global markets seem to contain breath. Gold retracted its new historical maximum and the cryptocurrency market as a whole shows stagnant behavior, with the main Altcoins exhibiting modest movements.

Ethereum (ETH), the second largest cryptoc Solarium (Sun) and Cardano (ADA) reflect similar profits. For its part, Binance Coin (BNB) stands out with an increase of 2.7%, driven by a new historical maximum of USD $ 960 reached on Tuesday.

Looks at the Fed and Ears in Powell

The attention of the markets is set in the Fed decision, scheduled for the 2 PM (ET), followed by a press conference by President Jerome Powell. While almost a fact that the Federal Reserve will reduce interest rates in 25 basic points, merchants will very possibly focus on Powell’s comments to obtain signals on future policies.

Markets widely expect the first rate cut of the year –The first since December 2024. According to the tool Fedwatch CME, there is a 96% probability of a 25 basic points cut at the meeting of the Federal Open Market Committee (FOMC), with a 4% possibility of a more aggressive reduction of 50 basic points.

The traigators in Polymarket They reinforce this expectation, assigning 93% probability to a cut of 25 basic points and 5% to one of 50 basic points.

Bitcoin reaction already discounted?

Interest rate cuts have been a measure that has historically benefited risk assets –including cryptocurrencies– because investors renewed for speculative assets, potentially injecting liquidity into the markets.

However, some experts warn that the reaction of Bitcoin And the rest of cryptocurrencies could be limited, since the expectation of a 25 basic points cut seems to be “practically discounted”For investors, as Juan Leon, senior strategist of investments of Bitwisein statements to Decrypt.

In this sense, Powell’s comments during the press conference will be key to determining the future management of the market.

“The markets are focused on Wednesday FomC, with a cut of 25 basic points already assumed“He said Swissblock In an X publication. However, they warned that “Volatility is guaranteed “and the risk index of Bitcoin It will be a crucial indicator to determine whether the BTC upward structure is maintained or if a correction could be coming.

Technical Perspectives for Bitcoin

From the technical point of view, Bitcoin has shown strength by exceeding USD $ 117,000, quoting above the main daily exponential mobile socks, according to Cointelegraph. However, analysts warn that to maintain the bullish impulse, BTC must overcome and consolidate the key resistance between USD $ 117,000 and USD $ 118,000.

“If Bitcoin breaks the USD $ 118,000 and is maintained above, the next objectives will be new historical maximums,” said analyst Jelle in a post in X. On the contrary, a fall below USD $ 116,800 could lead to the price to prove the support in USD $ 114,500 or even the psychological level of USD $ 112,000, according to Michael Van de Poppe, founder of Mn Capital.

Macroeconomic context and political pressures

The macroeconomic context adds a layer of complexity to the Fed decision. The recent downward review of 911,000 jobs created in the last year, has reinforced the expectations of a rate cut to stimulate an economy that shows signs of weakness.

In addition, the pressures of President Donald Trump, who has demanded aggressive cuts, have generated concerns about the independence of the Central Bank. Trump recently tried to dismiss the governor of the Fed, Lisa Cook, and achieved Stephen’s confirmation look as a new member of the Council. These movements have intensified scrutiny about Fed decisions.

Fed tone marks the guideline for crypto

Despite uncertainty, interest in cryptocurrencies remains robust. The funds quoted in the stock market (ETF) of Bitcoin in cash in the US Ethereum The counted have seen almost USD $ 298 million, according to data from Sosovalue.

However, the dominance of Bitcoin has fallen to a minimum of eight months of 57%, according to data from Coinmarketcapwhich could indicate a capital flow towards Altcoins More speculative, a phenomenon that could intensify if the Fed adopts a favorable tone.

In conclusion, while investors expect the Fed decision, the cryptocurrency market remains in a state of caution.

The confirmation of a rate cut, together with the signals that Powell can offer about future monetary policy, will be crucial to determine if Bitcoin It can exceed the resistance of USD $ 118,000 and move towards new historical maximums or if, on the contrary, it will face a correction. Merchants will be attentive to each word of the president of the Fed, aware that any favorable indication could trigger a massive sale.

Article written with the help of AI, edited by Diariobitcoin

Edited image of Unspash

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