Bitcoin Holds Firm Ahead of Fed Decision Amid Pivotal Week for Digital Assets

Bitcoin (BTC) has been holding firm near $65,000 despite weakness in AI-related technology stocks. The digital asset is up around 4% since Friday, while Ethereum (ETH) climbed to its highest level in nearly two months.

The gains came even as Nvidia fell 4.8%, dragging other AI-focused stocks lower. However, strength in major technology companies such as Apple, Microsoft, and Alphabet helped keep the Nasdaq relatively stable.

Market analysts believe the coming days could determine whether Bitcoin finally breaks out of its multi-month trading range or retreats toward recent lows. Investors are closely watching the U.S. Federal Reserve’s interest rate decision, core PCE inflation data, second-quarter GDP figures, and quarterly earnings from major tech firms including Microsoft, Meta, Apple, and Amazon.

Joel Kruger, market strategist at LMAX Group, said crypto's recent resilience during periods of volatility in traditional markets is an encouraging sign that digital assets may be gradually decoupling from conventional risk assets. He noted that Bitcoin must break above $67,300 to confirm a bullish breakout, while Ethereum faces key resistance around $2,000.