Fed Decision Today Could Lift or Crush Bitcoin's Price Above $80K

Bitcoin's price has been hovering around $77,000 as the Federal Reserve prepares to make its decision on interest rates today at 2:00 PM ET. The market is heavily positioned for a 25-basis-point rate hike, and traders are closely watching the Fed's policy guidance, which could determine whether Bitcoin can recover towards $80K or extend its decline.

The inflation backdrop remains relevant to the decision, with August CPI increasing 0.4% month over month and 3.4% annually, while core CPI rose 0.3% month over month and 2.4% year over year. A hike is already widely expected, but softer forward guidance could reduce pressure from bond yields and allow $BTC to recover towards $80K.

If the Fed unexpectedly leaves rates unchanged, markets would need to reprice the policy outlook quickly, which could trigger a sharper relief move in Bitcoin. However, the sustainability of the rally would depend on the reasoning behind the decision and the Fed's projections.