Bitcoin Stalls at $64,000 as Geopolitics and Macro Headwinds Mount

Bitcoin's price whipsawed around $64,000 on Wednesday as traders dealt with multiple macroeconomic headwinds. The US Federal Reserve is preparing to release its next interest-rate decision, a move that could impact risk-asset volatility.

The FOMC meeting comes at a time when global markets are already under pressure due to geopolitical tensions and rising oil prices. Oil prices surged 8% on Wednesday after US President Donald Trump threatened a 'beating' for Iran, causing concerns about inflation and interest-rate expectations.

Data from TradingView showed BTC/USD halting a local rebound at the Wall Street open, having hit 11-day lows of $62,700 the day prior. The price action is currently bounded by its 50-day simple (SMA) and exponential (EMA) moving averages, with failed breakouts taking advantage of liquidity zones on either side.

The CME Group's FedWatch Tool showed 66.3% odds of current levels of 3.5%-3.75% remaining in place, with a 0.25% hike attracting 33.7%. The Kobeissi Letter noted that market expectations for the FOMC meeting are 'among the most divided' in recent history.