The U.S. Federal Reserve’s Meeting on Interest Rates

BTC Holds Steady Ahead of Critical Fed Interest Rate Decision

The U.S. Federal Reserve is currently conducting its two-day meeting to determine the direction of the country’s interest rates.

Most experts predict the Fed will hold rates steady at the 4.25-4.50% level when central bank Chairman Jerome Powell addresses the nation on the second day of the Federal Open Market Committee (FOMC) meeting. However, U.S. President Donald Trump remains a wildcard; he has exerted considerable pressure on Powell to either cut rates or resign. As markets brace for what is expected to be a politically charged day, stock indices were mixed, and bitcoin remained mostly flat at $117K on Tuesday prior to Powell’s scheduled press conference.

Trump has openly criticized Powell, even personally touring the Fed headquarters last week to scold the 72-year-old Fed chair for mismanaging a $2.5 billion renovation project at the central bank.

According to the CME FedWatch Tool, there is a 97% probability that the Fed will maintain current rates after the FOMC meeting concludes Wednesday afternoon.

Despite intense pressure, Powell seems resolute in keeping rates unchanged. With inflation at 2.7%, above the Fed’s 2.0% target, most experts have concluded that a rate cut is unlikely. The subdued market performance of stocks and Bitcoin appears to align with this consensus.

Overview of Market Metrics

Bitcoin is quoted at $117,607.17 at the time of writing, reflecting a 0.55% decrease over 24 hours and a 1.21% decline for the week. BTC has fluctuated between $117,441.44 and $119,273.87 over the past day, per Coinmarketcap.

Trading volume over the last 24 hours rose by 4.26% to $66.58 billion, while market capitalization dipped by 0.59% to $2.34 trillion. BTC dominance inched up by 0.22%, reaching 61.53% at this reporting time.

Total bitcoin futures open interest decreased by 2.55% to $83.60 billion over the last 24 hours, according to Coinglass. The total for bitcoin liquidations stood at a relatively low $3.56 million, primarily due to bulls losing about $3.38 million; bears with short positions saw minimal liquidations of only $175,840.