Bitcoin recovered slightly, climbing 0.75% to trade above $64,300 after a turbulent couple of days. Last week it surged to $66,700 but then tumbled to near $62,400 following sharp declines in South Korean stocks. The crypto market now sits in a holding pattern as investors await the Federal Reserve’s interest rate announcement, expected to mark the first increase in three years.
Inflation remains stubborn at 4.1%, supporting the case for higher rates despite easing oil prices after tensions between Iran and the U.S. cooled. Traditional markets are cautious, with S&P 500 and Nasdaq futures inching up slightly and gold steady above $4,000. Silver, meanwhile, gained 1.4% as markets hedge their bets rather than make bold moves before the Fed's decision.
Crypto Market Mixed Ahead of Announcement
The CoinDesk 20 Index showed a balanced picture with half its members advancing and the other half falling. Jupiter (JUP) led a DeFi rebound, increasing almost 6%, while AI-related tokens like FET dropped sharply, unwinding some of last month’s gains. Ethereum slipped marginally by 0.13% on the day.
Derivatives data reflects steady positioning. The long-short volume ratio in crypto trading is nearly balanced, with open interest stable near $113 billion and a 10% uptick in volume to $205 billion. Yet, despite spot price gains for Bitcoin and Ethereum exceeding 1% in 24 hours, futures trading activity hasn’t picked up accordingly.
