Bitcoin at $83,000—Markets Await Federal Reserve Policy Update

While equities remain highly volatile, digital assets have exhibited relative stability in recent weeks. This is not an anomaly—market participants are awaiting the Federal Reserve’s decision, with no major catalysts driving crypto prices in either direction.

For example, Bitcoin has remained within the $80,000–$85,000 range, following a 25% correction from its January highs, suggesting a period of market consolidation.

Spot Bitcoin ETFs in the U.S. are under pressure, with $830 million in outflows this week, per CoinGlass. The biggest loser? Fidelity’s FBTC, which shed $307 million. Ethereum ETFs weren’t spared either, though their outflows tapered off toward the end of the week.

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Market analysts note that long traders are building substantial order blocks in the current price range, which may indicate potential support for Bitcoin. However, bearish activity persists, with one unidentified trader initiating a $380 million short position through a decentralized platform, setting liquidation at $86,593.

Market participants are closely monitoring the upcoming FOMC meeting, where the U.S. Federal Reserve will announce its interest rate decision. While the probability of maintaining the current rate is 98%, the key market-moving event will likely be Fed Chair Jerome Powell’s statements on economic conditions and the central bank’s forward guidance.

Should the policy outlook be accommodative, Bitcoin and other digital assets may attempt to break higher. Conversely, a hawkish stance could trigger a decline below $80,000. Given these risks, caution is advised, particularly for traders engaged in futures and other leveraged instruments.

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