Bitcoin Price Stuck in Tight Range Ahead of Fed Meeting

The Bitcoin price has been stuck in a tight range between $75K and $82K for some time, and experts say it needs a significant catalyst to break out. The asset's volatility is currently low due to margin positions that are becoming increasingly large, but this could change if the price breaks below or above its current bounds.

CryptoQuant notes that spot demand for Bitcoin remains weak, meaning the recent rally lacks solid fundamental support and is instead driven by derivatives. This situation is reminiscent of January-March, when derivatives dominated the market.

The Federal Reserve's upcoming meeting on interest rates on September 16th could have a significant impact on the crypto market, as well as the procedural vote on the CLARITY Act on September 15th. Attorneys general from 18 US states are calling for the Senate to reject the bill in its current form, citing concerns that it restricts state authorities' oversight of cryptocurrencies.

Ethereum's growth is expected to be driven by tokenisation and AI agents development, according to Tom Lee, Chairman of BitMine. The company recently purchased 27,180 ETH at an average price of $2.51K, bringing its total reserves to 5.96 million ETH.