All eyes are on the Federal Reserve today as markets await its latest interest rate decision — a pivotal moment that could steer the direction of Bitcoin and broader risk assets.
The Fed is widely expected to keep rates unchanged, with prediction markets like Polymarket pricing in a 98% chance of no adjustment. However, growing speculation around a potential pivot has stirred uncertainty, especially after President Trump hinted earlier this week that Jerome Powell seemed open to future cuts following their private meeting.
Bitcoin is holding steady around $118,400 at the time of writing, up modestly over the past 24 hours. But that stability could be short-lived depending on the Fed’s tone. Analysts warn that stubborn inflation and recent strong labor data may leave the central bank leaning hawkish, even as political and market pressures grow for easing.
Edward Moya, a senior analyst at OANDA, noted on CNBC that crypto remains highly reactive to interest rate expectations. “A dovish Fed could reignite bullish momentum, but a surprise hike or prolonged tightening could pressure risk assets even further,” he said.
Historically, higher interest rates reduce the appeal of speculative assets like Bitcoin, driving capital toward safer instruments such as government bonds. With market sentiment hanging in the balance, today’s Fed statement may become a key catalyst — not just for crypto, but for the entire risk-on landscape.
Alexander Stefanov
Reporter at Coindoo
Alex is an experienced financial journalist and cryptocurrency enthusiast. With over 8 years of experience covering the crypto, blockchain, and fintech industries, he is well-versed in the complex and ever-evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His approach allows him to break down complex ideas into accessible and in-depth content. Follow his publications to stay up to date with the most important trends and topics.
Source: https://coindoo.com/crypto-news-live-fed-decision-today-could-shake-the-market-what-does-it-mean-for-bitcoin/