Bitcoin (BTC) has been holding steady above $82,000, with market participants eagerly awaiting the outcome of the Federal Open Market Committee (FOMC) meeting. Despite the typical volatility that often accompanies FOMC announcements, Bitcoin has shown resilience, with key indicators pointing toward potential price fluctuations. The broader cryptocurrency market experienced cautious trading, as fear dominated sentiment, resulting in a slight increase in market capitalization to $2.72 trillion, though 24-hour trading volumes decreased by 1.59%.
Ethereum led the altcoins in recovery with a modest 1.64% gain, while XRP and Solana posted small increases. EOS stood out with an impressive 25.72% surge, contrasting with notable losses from other coins like FORM (-13.26%) and CAKE (-7.49%). The Fear & Greed Index dipped to 23, reflecting market uncertainty ahead of the FOMC’s decision, which is expected to drive significant market shifts once announced.
In the past week, Spot Bitcoin ETFs saw a reversal of the trend of outflows, recording $275 million in net inflows. This shift has sparked speculation that institutional investors are preparing for a more dovish stance from the Federal Reserve, which could influence market conditions. Investors are bracing for volatility, with analysts predicting potential market swings depending on the Fed’s tone, which could either buoy or suppress prices depending on whether they adopt a dovish or hawkish approach.
On the corporate front, Metaplanet, a Japanese Bitcoin treasury company, has made a significant move by acquiring an additional 150 BTC, bringing its total holdings to 3,200 BTC. The company, likened to “Asia’s MicroStrategy,” has followed a strategy similar to Michael Saylor’s by issuing shares to finance its Bitcoin purchases. However, some analysts, like crypto expert Xanrox, are cautioning about a potential 65% price drop by 2026, citing concerns about a bear market and diminishing returns in Bitcoin’s market cycles.
source: cnbc