Fed Decision and ETF Flows Shape Market Outlook for Bitcoin

Bitcoin's price has stabilized above $65,000 after a volatile period, and market participants are now focusing on the US Federal Reserve's interest rate decision. The Fed meeting is expected to provide guidance on monetary policy, with investors closely watching Chair Kevin Warsh for comments on inflation, economic growth, and future policy.

The latest price action suggests that Bitcoin has regained some confidence after a period of uncertainty. Despite the recovery, however, the asset remains below its 2025 record high of over $126,000, down around 25% this year.

The rebound in Bitcoin's price has been supported by improving risk appetite across global financial markets, driven by easing tensions between the US and Iran. However, investor sentiment is cautious ahead of the Fed meeting, with some institutional investors reducing exposure to spot Bitcoin exchange-traded funds (ETFs).