Bitcoin Waits as FOMC Decision Looms: Will Interest Rates Hold or Hike?

Bitcoin's price has hovered around $64,300 on Wednesday morning as investors await the Federal Open Market Committee's interest rate announcement scheduled for 2:00 p.m. ET today.

The two-day meeting, which began Tuesday under Federal Reserve Chair Kevin Warsh, is expected to keep the federal funds target range at 3.50% to 3.75%, a move that would have a moderate impact on Bitcoin's price trajectory.

Market participants are pricing in a 60-70% chance of interest rates being held steady under Warsh's leadership, while the chance of a 25-basis-point hike has climbed to roughly 30-40%.

A surprise hike would likely strengthen the U.S. dollar, reduce overall financial-system liquidity, and dampen appetite for risk assets such as cryptocurrencies, potentially putting downward pressure on Bitcoin's price.