Bitcoin's price is holding steady as investors across the cryptocurrency market adopt a wait-and-see approach ahead of the upcoming U.S. Federal Open Market Committee (FOMC) meeting. The leading cryptocurrency has been trading in a tight range between $116,000 and $120,000 for more than two weeks , indicating a period of consolidation and market indecision.
FOMC meetings are historically a source of volatility for markets, including digital assets. The central bank's decisions on interest rates and broader monetary policy influence investor appetite for risk-on assets like Bitcoin. A more "dovish" tone from Federal Reserve Chair Jerome Powell could boost Bitcoin, while a "hawkish" stance might lead to short-term pain. Currently, markets are pricing in a 97.5% probability that interest rates will remain unchanged between 4.25% and 4.50%.
Analysts are closely watching key technical levels. The $120,000 resistance level is seen as a critical hurdle , while a break below support levels like $114,000-$116,000 could trigger a further drop toward $112,000. Despite the lack of clear direction, corporate and institutional demand has remained strong, with Strategy (formerly MicroStrategy) adding nearly 21,000 additional BTC and spot Bitcoin ETFs recording continued inflows.
In addition to the FOMC meeting, the market is also anticipating a policy report on digital assets from the White House, which could provide further direction for the industry. Investors remain cautious, as derisking ahead of major macroeconomic events is a common tactic. Powell's speech following the rate decision will be heavily scrutinized for any hints about the Fed's future intentions, which will likely determine Bitcoin's short-term path.