Bitcoin remained under $76,000 as the US Federal Reserve prepared to announce its interest-rate decision, hovering near its lowest levels since August 21.
The cryptocurrency's weakness coincided with the failure of the CLARITY Act to advance in the Senate, shifting market focus to the Federal Reserve's policy announcement. According to CME Group's FedWatch Tool, markets assessed a greater than 90% probability that the Fed would enact a 0.25% rate hike, raising the federal funds rate to between 3.75% and 4%.
The rate decision comes as the Federal Reserve navigates competing pressures from inflation concerns and calls for rate cuts from US President Donald Trump. Oil prices have contributed to inflation concerns, with US WTI crude oil reaching $106.70 per barrel on Tuesday, its highest level since May 4, driven partly by supply-chain disruptions linked to Middle East tensions.
The Fed's announcement marks one of three major central-bank rate decisions this month. The European Central Bank implemented a 0.25% rate hike the previous week, while the Bank of Japan was expected to follow suit at its Friday meeting, bringing its benchmark rate to 1.25%, its highest level in 31 years.
Bitcoin Support Levels
Onchain analysis indicated multiple support levels should Bitcoin decline further. Exchange order-book bid liquidity concentrated around $68,000, while the aggregate cost basis of short-term holders provided support at $71,300. Should these levels fail to hold, analysts identified stronger on-chain support between $62,000 and $65,000, representing approximately 9% of Bitcoin supply.
