Bitcoin rises ahead of the Fed’s interest rate decision

Cryptocurrency

On Monday, the Nasdaq, S&P 500 indices, and even gold reached historical highs, but Bitcoin’s upward movement was more restrained. Investors’ attention is now focused on a potential interest rate cut in 2025 following the two-day Fed meeting, leaving the crypto market in a state of anticipation.

Fed Chair Jerome Powell has kept rates at the previous level since December 2024, despite a wave of criticism from the Trump administration.

Rising new unemployment claims are expected by most economists to force the Fed to lower rates as a countermeasure against potential economic slowdown. However, the possibility remains that the central bank may decide to maintain the current key rate.

For Fed Chair Jerome Powell, risk management may go beyond balancing employment and inflation risks, according to Michael Feroli, Chief U.S. Economist at J.P. Morgan. — “Currently, the path of least resistance is to postpone the next 25 basis points rate cut to the September meeting.”

On the evening of September 16, Bitcoin was trading at $116,500, up 1.3% over 24 hours (CoinGecko data). Since Monday, the cryptocurrency price fluctuated between $111,023 and $116,705.

The 24-hour trading volume fell by 15.48% to $41.71 billion, but market capitalization increased by 0.94% to $2.3 trillion, reflecting the price rise. Bitcoin dominance also slightly increased by 0.22% compared to the previous day, reaching 56.2%.

See also: "First U.S. XRP and Dogecoin ETFs may launch this week"

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