Bitcoin climbed about 1.6%, trading close to $64,400 early Wednesday, recovering from a dip below $63,000 the day before. The modest bounce came as traders hesitated to push prices higher ahead of the Federal Reserve's interest rate announcement scheduled for later that afternoon. Market participants showed willingness to buy the dip but stayed cautious, avoiding aggressive moves until the central bank's decision clears the air.
Trading volume hovered between $24 billion and $25 billion, with Bitcoin's market cap steady near $1.29 trillion. Despite the rebound, the cryptocurrency remains nearly half below its October 2025 peak above $126,000, reflecting longer-term wariness after July’s price slide from the mid-$66,000s. Buyers had controlled the upper $63,000s zone but lacked the conviction to accelerate upward momentum before the Fed's news.
The Federal Reserve's announcement has a reputation for eclipsing technical trends. The market expects the benchmark rate to hold between 3.50% and 3.75%, yet about 30% of futures markets assign a chance of another hike, driven by persistent inflation pressures and energy costs despite recent oil price easing. Traders are bracing for potential volatility, aware that Fed Chair Kevin Warsh's press conference could shift market sentiment abruptly. The caution seen in crypto mirrors wider market responses when policymakers hint at tightening, a pattern also visible in traditional finance.
