Bitcoin Holds Steady Ahead of Fed Decision

Market Snapshot
Bitcoin rose slightly on Wednesday, up 0.5% at $116,552, stabilizing after hitting a near one-month high on Tuesday. The move follows a broad improvement in risk appetite, with traders awaiting the U.S. Federal Reserve’s rate decision later today.

---

Key Drivers

1. Fed Rate Cut Bets

• Markets expect at least a 25 bps cut from the Fed.
• Some traders are eyeing a 50 bps move, though sticky inflation data adds uncertainty.
• Powell’s speech and dot plot projections will be critical for gauging the pace of easing into 2026.

Lower interest rates historically benefit Bitcoin by:

• Weakening the U.S. dollar.
• Boosting liquidity in speculative assets.
• Echoing the dynamics that fueled Bitcoin’s 2021 bull run.

---

2. Crypto Market Signals

• Exchange reserves of Bitcoin fell to their lowest since Jan 2023 → suggests reduced selling pressure as coins move to cold storage.
• Stablecoin balances rising on exchanges → signals “dry powder” ready for deployment, hinting at potential buying pressure in coming sessions.

---

3. Altcoins Mixed

• Ether: -0.8% at $4,492.59.
• XRP: +0.4% at $3.0152.
• Solana: -0.9%.
• Cardano: +1.1%.
• Dogecoin: -0.8%.
• $TRUMP: +0.2%.

---

Risk Factors

• Corporate treasuries: MicroStrategy’s rejection from S&P 500 keeps doubts alive over the sustainability of the “Bitcoin treasury strategy.”
• Volatility warning: Fed’s decision and Powell’s press conference could trigger sharp moves across risk assets, including crypto.