Bitcoin Stabilizes Above $100,000 Amid Fed Meeting Anticipation

According to Cointelegraph, Bitcoin's price experienced a brief dip below $100,000 but managed to close at $102,000 on January 28, 2025. Over the past day, the cryptocurrency has maintained its position above the six-figure mark as the market prepares for the Federal Open Market Committee (FOMC) meeting. The CME's FedWatch tool indicates a 99.5% probability that the Federal Reserve will keep interest rates steady at 4.25% to 4.50% during the meeting on January 29. In December 2024, the FOMC minutes suggested a cautious approach for 2025, with potential rate cuts contingent on new data indicating economic weakness and lower inflation. Analysts have largely anticipated unchanged interest rates, shifting focus to the tone of Fed Chair Jerome Powell's statements. A hawkish stance from Powell could lead to increased bearish volatility for Bitcoin. The downside target for Bitcoin is around $94,000, with potential further declines to $88,900 if certain market conditions are met. Futures market analyst Byzantine General also predicts a possible retest of the $94,000 to $92,000 range before the FOMC meeting. A significant aspect of this meeting is that it will be the first under U.S. President Donald Trump's administration. Recently, Trump urged the Federal Reserve to consider interest rate cuts, citing falling oil prices. Macroeconomics analyst Tomas expressed skepticism about Powell adopting a more hawkish stance compared to the December 2024 press conference, noting recent favorable inflation data. Market commentators suggest that a dovish sentiment from the Fed could propel Bitcoin higher, potentially reaching a new all-time high above $110,000 in February. However, it's important to remember that the Federal Reserve operates independently and is not obligated to heed the President's opinions. While market sentiment is currently bullish, the outcome of the FOMC meeting will provide a clearer picture of future trends. This article does not offer investment advice or recommendations. All investment and trading decisions involve risk, and readers should conduct their own research before making any decisions.