Bitcoin Steadies Above $64K as Traders Await Fed Rate Decision
Bitcoin (BTC) has steadied above key technical support at $64,400 as traders await the US Federal Reserve's interest rate decision on Wednesday. However, the recovery remains fragile due to persistent outflows from Bitcoin spot exchange-traded funds and renewed geopolitical tensions.
The Iranian Revolutionary Guard Corps launched a surprise attack on US forces in the Middle East with ballistic missiles, but all were successfully intercepted by the US Central Command. The retaliation against Iran-aligned terrorists has added concerns about disruptions to global energy supplies, triggering a sharp recovery in crude oil prices and dampening risk appetite.
Markets are divided over the Fed's rate decision, with an 70.6% chance of rates remaining unchanged and a 29.4% chance of a 25 basis points hike. The split in rate expectations reflects differing views on inflation, which cooled in June but remains elevated due to higher oil prices and disruptions in the Strait of Hormuz.
Bitget Wallet Research Analyst Lacie Zhang notes that a hawkish hold or surprise hike would likely keep capital concentrated in Bitcoin, stablecoins, and dollar-yield strategies. On the other hand, a more balanced message could support a gradual rotation back into higher-beta on-chain assets.