Bitcoin Holds Key Support Ahead of FOMC Meeting

The Federal Reserve's July policy meeting is set to take place today, and investors are bracing for increased volatility in Bitcoin's price. The central bank is expected to keep interest rates unchanged at 3.50%-3.75%, with a 68.5% probability assigned by the CME FedWatch Tool.

However, traders will be focusing less on the rate decision itself and more on Fed Chair Kevin Warsh's policy outlook for clues on inflation, economic growth, and future monetary policy directions. A dovish tone could boost demand for risk assets like Bitcoin, while a hawkish stance may strengthen the US dollar and trigger short-term selling pressure.

Bitcoin has traded near $64,000 support zone and has shown resilience despite the absence of a fresh bullish catalyst. The continued formation of higher lows on the daily chart suggests buyers remain in control, with the broader uptrend still intact. Momentum indicators also support the bullish case, but Bitcoin's next move will ultimately depend on how markets interpret the Federal Reserve's policy outlook.