BTC Holds Steady Ahead of Fed Rate Hike Decision
Bitcoin has been trading in a narrow range of $77,000 to $78,000 as the crypto market anticipates the Federal Reserve's interest-rate decision this week. According to Fox News data, there is a 90% likelihood of a rate hike at Wednesday's Fed policy meeting.
The asset recently touched $81k on August 27 but has since retreated to its current range, signaling a cool-off in momentum after a recent market rally that helped it recover from a low of $59k to a high of $81k.
Trading around this level suggests Bitcoin is 'holding its breath' ahead of the Fed's upcoming interest-rate decision. This week, on Wednesday, September 16, the institution will announce its interest-rate decision.
Most experts expect the regulator to hike interest rates by 0.25% on Wednesday, and that decision could negatively affect the digital asset market. Market observers anticipate the central bank will raise rates by 25 basis points at its upcoming meeting this week, with the probability of a hike rising to 90% while the chances of keeping rates unchanged dropping to less than 10%. On Wednesday, the Fed will announce its interest-rate decision, with 90% of market watchers expecting a hike because inflation figures have risen.