Bitcoin holds below $90K as markets remain cautious ahead of Fed decision: analysts

Bitcoin (BTC) continued its pattern of consolidation on Thursday, trading with subdued volatility and struggling to breach the crucial $90,000 psychological barrier. The dominant sentiment across the cryptocurrency market remains one of caution, as investors globally await key macroeconomic guidance from the United States Federal Reserve.

The world’s largest cryptocurrency has settled into a tight trading range, stabilizing above key short-term support levels but lacking the momentum required for a decisive upward swing. This hesitancy is directly attributed to the upcoming Federal Open Market Committee (FOMC) decision, where the central bank will announce its latest interest rate policy and provide updated economic projections.

While analysts widely anticipate the Fed will hold interest rates steady, the focus is entirely on Chair Jerome Powell’s press conference and the forward guidance regarding the timeline for future rate cuts. Any hawkish signals—indicating higher rates for longer due to persistent inflation—are expected to trigger risk-off behavior, putting immediate pressure on Bitcoin and other high-beta assets.

Market commentators suggest that until the macro uncertainty surrounding the Fed clears, BTC will likely remain capped below $90,000. ‘The $90K mark is acting as robust technical resistance,’ noted a lead analyst at MatrixPort. ‘A successful breakout above this level will require not just renewed spot ETF inflows, but more importantly, a clearly dovish signal from the Federal Reserve that eases liquidity concerns and boosts general market optimism.’

Source: Bitcoin holds below $90K as markets remain cautious ahead of Fed decision: analysts