Bitcoin Price Analysis: BTC Traders Cautious Over FOMC Meeting, Trump-Xi Meeting
Bitcoin (BTC) attempted to claim $116,000 yet again on Tuesday, reaching an intraday high of $116,114. However, it lost momentum after reaching this level and fell by over 1% to $112,906.
The Federal Reserve will announce its decision on rate cuts later today in what is shaping up to be a crucial week for the flagship cryptocurrency.
US Stocks Rally Ahead Of Rate Cut Decision
Wall Street was in good spirits on Tuesday as the Dow Jones Industrial Average rose by over 150 points, while the S&P 500 and Nasdaq soared to record levels, thanks to a Microsoft-OpenAI deal. The Federal Reserve’s decision on interest rate cuts is expected today, pushing investor sentiment into positive territory. As a result, the Dow Jones Industrial Average rose 150 points while the benchmark S&P 500 rose 0.4% and the tech-heavy Nasdaq Composite rose 0.8%. The gains are thanks to a positive reaction to a potential US-China trade deal, with Wall Street stocks also inching towards another bullish close.
Nvidia, Apple, and Microsoft traded in positive territory as positive market sentiment pushed the three major indexes towards record highs. The three tech giants also reported key developments, with Nvidia's Chief Executive Officer Jensen Huang highlighting a “turning a corner” outlook for the company. A $1 billion stake in Nokia also boosted intraday gains. Microsoft shares also rose 2% as the market responded positively to a deal between Microsoft and OpenAI. Apple shares also rose, pushing the iPhone maker past the $4 trillion market valuation mark.
Bitcoin ETFs Register Inflows
Bitcoin ETF inflows have returned, recording over $260 million in net inflows over the past three trading sessions. According to data from SoSoValue, Bitcoin ETFs posted $202 million in net inflows, with only three ETFs posting significant gains. Ark & 21Shares ARKB reported $75.84 million, while Fidelity FBTC reported $67.05 million. BlackRock’s IBIT registered the smallest inflow on the day with $59.60 million.
The total trading volume reached $4.18 billion, with net assets of $154.81 billion, representing 5.88% of Bitcoin’s market cap.
Bitcoin (BTC) Price Analysis
Bitcoin (BTC) is marginally up during the ongoing session, trading around $113,150. The flagship cryptocurrency ended the weekend in positive territory, rising nearly 3% to $114,548. The price reached an intraday high of $116,410 on Monday but lost momentum and settled at $114,087, ultimately dropping 0.40%. BTC attempted to cross $116,000 again on Tuesday, reaching an intraday high of $116,114. However, it fell back into the red after reaching an intraday high of $116,114, ultimately settling at $112,906.
The Federal Reserve will likely announce a 25 bps rate cut in what is shaping up to be a crucial week for Bitcoin. The Fed had previously indicated two further rate cuts in 2025. Lower interest rates are generally bullish for Bitcoin. The rate cuts impact savings accounts and bonds, forcing investors to redirect capital elsewhere for healthier returns. The increased market liquidity pushes capital into risk assets like Bitcoin, especially if the Dollar is weakened. However, analysts don't expect a bumper Bitcoin rally as the market has already “priced in” the rate cut.
Lukman Otunuga, senior market analyst at FXTM, believes the Fed’s decision may not be the biggest driver for Bitcoin this week. US President Donald Trump’s meeting with Chinese President Xi Jinping could provide a catalyst for a rally if markets perceive a thaw in the trade war between the two countries. Tech companies, including Meta, Alphabet, Amazon, Microsoft, and Apple, are also reporting earnings this week. Otunuga added,
“Global equity bulls have regained control as optimism over a potential US–China breakthrough sparks risk appetite. But with central banks in the spotlight and Big Tech earnings on deck, markets could be in for another week of sharp twists and turns. Traders should brace for heightened volatility as policy decisions and corporate results dictate sentiment.”
Meanwhile, one market expert has warned investors of difficult times, predicting that BTC could drop to $70,000 once the bear market kicks in. Jon Glover, Chief Investment Officer at Ledn, believes the bull market, which began in early 2023, could be on its last legs.
“I firmly believe we have completed the five-wave upward move and are now entering a bear market that may last until at least late 2026. I expect bitcoin to trade between $70K and $80K, and possibly even lower.”
BTC ended the previous weekend in positive territory, rising 1.37% on Sunday and settling at $108,676. Buyers retained control on Monday as the price rose nearly 2% to reclaim $110,000 and settle at $110,568. BTC surged to an intraday high of $114,082 on Tuesday. However, it lost momentum after reaching this level and dropped 1.99% to $108,362. Selling pressure persisted on Wednesday as BTC fell 0.72% to a low of $106,639 before settling at $107,585. Despite the selling pressure, the price recovered on Thursday, rising over 2% to cross $110,000 and settle at $110,116. BTC continued pushing higher on Friday, rising almost 1% to $111,042.
Source: TradingView
Price action remained positive over the weekend, with BTC rising 0.56% on Saturday and settling at $111,666. Bullish sentiment intensified on Sunday thanks to positive macroeconomic developments, including positive trade talks between the US and China, and rising odds of a rate cut. As a result, BTC rose 2.58% to cross $114,000 and settle at $114,548. The flagship cryptocurrency reached an intraday high of $116,410 on Monday. However, it lost momentum after reaching this level and settled at 114,087, ultimately dropping 0.40%. BTC rallied to an intraday high of $116,114 on Tuesday as bullish sentiment persisted. However, it lost momentum again and dropped over 1% to $112,906. The flagship cryptocurrency is marginally up during the ongoing session, trading around $113,114.
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.
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