Bitcoin’s Price Hike Pauses as FOMC Decision Looms
Bitcoin’s price has plateaued, hovering between $95,000 and $96,000. This is a 30% increase from its April lows. The market is now waiting for the Federal Open Market Committee’s interest rate decision.
Recent price movements align with President Donald Trump’s statements about ongoing trade negotiations with China. However, China’s Commerce Ministry clarified that tariffs are a barrier to talks. The country is also considering a fentanyl-related proposal, as reported by The Wall Street Journal, in response to Trump’s tariff justifications.
The upcoming FOMC meeting is the next big event for Bitcoin. Economists predict the U.S. Federal Reserve will keep interest rates at 4.5%. They expect a cautious approach due to high inflation. Tariffs may gradually push prices up. There’s a concern about a potential recession, with the economy contracting by 0.3% in Q1, the worst since 2022. This decision will shape the second half of the year.
Analysts anticipate the fed to hold rates steady. Yet, a 0.25% cut in June could boost Bitcoin’s value. This follows a 0.3% economic contraction in Q1, the worst as 2022. A rate cut could trigger another Bitcoin rally.
Technically, Bitcoin has crossed key resistance levels. It formed a mini golden cross pattern. If it breaks $100,000, it could reach its all-time high of $109,300.
