Bitcoin Tests Breakout Threshold as Fed Meeting Looms

Bitcoin held steady around $65,000 on Monday as AI-linked tech stocks faltered, but market analysts say the upcoming Federal Reserve meeting and key U.S. inflation data could determine whether the cryptocurrency finally breaks out of its months-long trading range.

The recent resilience of crypto during periods of volatility in traditional markets is an encouraging development, said Joel Kruger, market strategist at LMAX Group. He noted that Bitcoin needs to clear $67,300 to break out of the multi-week consolidation that has capped prices since June.

Tom Lee, chairman of Bitmine and co-founder of Fundstrat, pointed out that ether's recent outperformance relative to Bitcoin is a bullish signal for crypto markets. However, Nicolai Sondergaard, senior research analyst at Nansen, cautioned that the market lacks buying conviction and predicted a pullback towards $52,000-$58,000 unless market conditions improve.