Bitcoin Price Analysis: BTC Rebounds As Markets Await Fed’s Call on Rate Cuts

Bitcoin (BTC) has rebounded during the current session as markets recover in the leadup to the US Federal Reserve’s Federal Open Market Policy meeting. The committee is set to announce its latest policy decision at 2 PM IST. With the markets rebounding, the flagship cryptocurrency is up almost 4%, trading at $84,270. 

This is the second Federal Reserve meeting since Donald Trump returned to the White House, with investors keenly watching if Fed Chair Jerome Powell changes the current rate trajectory. 

Why Is South Korea Not Interested In A Bitcoin Reserve? 

The Bank of Korea recently released a statement saying it is not interested in acquiring Bitcoin (BTC). The primary reason behind the bank’s reluctance to add the flagship cryptocurrency to its reserves is its high volatility. The bank’s representative described BTC’s price trajectory as a roller coaster, adding that the potential for a price decline could not guarantee an expected value in Korean Won at any given moment. According to the bank, a reserve asset must be available and usable immediately by request and denominated by a currency with a high credit rating. 

The Bank of Korea also cited the reluctance of other countries to adopt Bitcoin as a national reserve asset. It stated that while Brazil and the Czech Republic had a positive experience adding Bitcoin to their reserves, the European Central Bank, Switzerland, and Japan had given a negative assessment of using the asset as a reserve fund. South Korea is one of the world’s largest economies and a crypto hub. Crypto exchanges operating in the country are legal and regulated, although cryptocurrencies are not considered legal tender. The capital gains associated with crypto are free from taxation. 

Bo Hines Outlines Bitcoin Strategy 

Executive Director of Trump’s Presidential Council on Digital Assets, Bo Hines, reiterated the White House’s stance on a Bitcoin Reserve and possible future purchase of the asset. President Donald Trump has signed two executive orders to create a digital asset regulatory framework and establish the country’s first Bitcoin reserve as he sets out to fulfill campaign promises. The executive order to create a Bitcoin reserve also authorized an audit of the US’s current BTC holdings, estimated to be around $200,000 BTC. It also directed officials to leverage budget-neutral strategies to buy more Bitcoin, putting to rest fears of a strain on the national deficit. 

Hines reiterated the stance at an event in New York, stating it was important for the US to “have, retain, and build” on its digital gold reserves. He also said the Trump administration was actively looking to acquire more BTC, stating, 

“I get asked all the time how much (BTC) you want. Well, that’s like asking a country how much gold do you want. As much as we can get.”

Hines also stated that stablecoin regulation is imminent after the Senate Banking Committee approved the GENIUS Act earlier this month. The Guiding and Establishing National Innovation for US Stablecoins (GENIUS) act aims to establish guidelines for stablecoin issuers. Hines stated, 

“We saw that vote come out of the Senate Banking Committee in an extremely bipartisan fashion. I think our colleagues on the other side of the aisle also recognize the importance of US dominance in this space, and they’re willing to work with us here, and that’s what’s really exciting about this.”

Bitcoin (BTC) Price Analysis 

According to the decentralized on-chain options platform Derive, Bitcoin (BTC) could be gearing up for significant volatility. BTC has traded between $80,000 and $85,000 since March after tanking from $100,000 to $80,000 due to an array of economic factors, including Donald Trump’s tariffs, a potential trade war, recession fears, and the disappointment of a lack of new purchases in the US strategic Bitcoin reserve. According to Derive, key consolidation metrics have declined to reach monthly lows. However, the low volatility could soon give way to price turbulence. 

“BTC’s weekly at-the-money (ATM) volatility has dipped below 50% to 49%, approaching monthly lows of 45%. Realized volatility has also dropped from 91% at the start of the month to 54% today. Volatility is mean-reverting, so we can expect it to rise soon, likely to levels seen in February (60-70%).”

BTC has registered a sharp jump during the ongoing session, as it looks to cross $85,000. Price action has been trading upwards since Tuesday when it fell to a low of $76,642. The price recovered from this level to register an increase of 5.50%, reclaim $80,000, and settle at $82,943. BTC continued to push higher on Wednesday, rising almost 1% and settling at $83,709 despite facing selling pressure. Sellers took control on Thursday as BTC fell over 3% and settled at $81,136, but not before hitting a low of $79,995. Bullish sentiment returned on Friday as markets rallied. As a result, BTC surged past the 200-day SMA, reaching an intraday high of $85,363 before settling at $84,002 after an increase of 3.53%.

Source: TradingView

Buyers retained control on Saturday as BTC registered a marginal increase and settled at $84,398. However, BTC lost momentum on Sunday, ending the weekend with a drop of over 2%, slipping below the 200-day SMA and settling at $82,611. BTC started the current week positively, rising almost 2% and settling at $84,017. Selling pressure intensified on Tuesday as the price fell to a low of $81,171. It rebounded from this level to settle at $82,728, ultimately registering a decline of 1.53%. The current session sees BTC up over 2% as buyers look to break past the resistance between $84,000 and $85,000. The flagship cryptocurrency is trading at $84,510 at the time of writing. The RSI is just below the neutral zone and pointing upwards, while the MACD is flashing bullish, indicating buyers have the upper hand. If BTC can move past this resistance zone, it could push towards $90,000.

Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.