Bitcoin Holds Steady at Slightly Above $27,000 Prior to Federal Reserve Interest Rate Announcement
On Tuesday, Bitcoin's attempt to stage a significant rally faced resistance, yet it managed to maintain its position above the $27,000 mark, closing the day at $27,180, marking a 1.4% increase over the past 24 hours.
Meanwhile, the broader Bitsday Market Index (BMI) showed a 1% gain for the day. Ether (ETH), on the other hand, underperformed with a modest 0.1% increase.
Earlier in the day, Bitcoin had surged to its highest level in three weeks, reaching $27,475. However, in line with the pattern seen for several months, sellers swiftly entered the market.
The results of the Fed policy meeting come tomorrow
The focus now shifts to the U.S. Federal Reserve's Federal Open Market Committee (FOMC), which is set to conclude its two-day policy meeting on Wednesday. While the FOMC is widely anticipated to maintain the current benchmark fed funds rate range of 5.25%-5.50%, investors will be closely monitoring the central bank's updated economic forecasts and the post-meeting press conference led by Chairman Jerome Powell. These events will provide insights into the future direction of monetary policy.
Looking ahead, the FOMC's next meeting is scheduled for early November, and the market currently reflects a 70% likelihood of policy continuity. Any unexpectedly hawkish signals in the updated economic projections or Powell's remarks could act as a negative catalyst for both cryptocurrency and traditional financial markets.
Read more: Matrixport Predicts Impending Altcoin Market Downturn