Fed Decision Looms Large Over Stagnant Bitcoin Price
Bitcoin remains stuck in a tight price range as traders await the Federal Reserve's decision on interest rates. The market is experiencing a mix of fading selling pressure, leveraged positions, and renewed inflation concerns.
The U.S. central bank will announce its decision on September 16, with markets currently predicting an 88.5% chance of a 25-basis-point rate hike. This has led to increased expectations for higher interest rates, making non-yielding assets like Bitcoin less attractive to some investors.
Newer investors now account for most of the remaining supply, but trading activity remains low, with sellers becoming less aggressive without a strong wave of new buyers stepping in. The report from Bitfinex Alpha notes that about 840,000 BTC have a cost basis within this narrow range, meaning they were bought at prices inside it.
The Glassnode sell-side risk ratio has fallen to seven basis points, showing that long-term holders are taking fewer profits. However, institutional demand has weakened, with U.S. spot Bitcoin ETFs seeing over $460 million in outflows last week, selling approximately 5,900 BTC.