Bitcoin Holds Firm at $77K as Traders Eye Fed Rate Decision

Bitcoin has maintained its value above $77,000 as traders wait for the Federal Reserve's decision on interest rates. The cryptocurrency traded near $77,600 on Tuesday after briefly approaching $79,500. Despite a stronger dollar and rising Treasury yields, which normally make speculative assets less attractive, Bitcoin has shown resilience.

The markets have priced in a 93% probability of a quarter-point rate hike from the Fed, following strong employment and inflation data. However, the bigger reaction may come from the Fed's guidance on additional tightening. A one-and-done message could weaken the dollar and help Bitcoin retest $80,000, while a signal that several hikes remain possible would threaten the $77,000 floor.

Crypto stocks have also seen a rebound, with Coinbase climbing 9.2% and Strategy gaining 4.5%. The passage of the Clarity Act in the Senate could lower regulatory uncertainty for digital assets, although disputes over ethics provisions and stablecoin rewards remain unresolved.