Analysts are closely monitoring this week’s Federal Reserve meeting to determine whether it will influence Bitcoin’s price trajectory or lead to rate adjustments. While analysts do not expect policymakers to implement any changes, investors actively seek guidance on potential future monetary decisions.
Global markets remain clouded by uncertainty as crypto assets move sideways in anticipation of this week’s U.S. Federal Reserve meeting.
Equities managed to stabilize briefly on Monday, but defensive behavior persisted in crypto markets following the $1.2 billion futures liquidation on Friday. This event triggered a sharp weekend decline in altcoins as overleveraged long positions were flushed out.
Bitcoin briefly climbed past $108,000 during the U.S. morning session on Monday but declined to $106,500 as traders locked in profits. Later, renewed buying interest in the Asian morning hours on Tuesday lifted the price back above $107,000.
Over the past week, Bitcoin exchange-traded funds (ETFs) recorded net inflows totaling $1.4 billion. This inflow reinforced the function of spot-based instruments in cushioning price volatility, even amid wider market corrections.
Crypto Remains Cautious Amid Geopolitical and Monetary Tensions
Ether (ETH) climbed 1.5% over the past 24 hours, though it continued to trail behind Bitcoin’s momentum fueled by ETF inflows. Solana’s SOL and Tron’s TRX held steady with gains of 1.5% and 2.1%, respectively. However, traders maintained a cautious stance across the broader market.
Gold and oil—long viewed as traditional safe-haven assets during times of geopolitical unrest—were driven higher in early trading after U.S. President Donald Trump issued a surprise call for the evacuation of Tehran during a statement at the G7 summit. The announcement prompted a swift move by investors toward defensive assets.
According to analysts, Bitcoin exhibited its usual pattern by trailing behind the broader market movement.
However, if investors shift their risk appetite and begin pursuing alternative stores of value, Bitcoin could gain fresh traction in the coming weeks—especially if this week’s Federal Reserve meeting meets their expectations.
That expectation has taken center stage. While markets largely anticipate that the Federal Reserve will maintain current rates, analysts will closely scrutinize Chair Powell’s remarks—especially his tone and language concerning inflation trends and proposed tariffs.
Jeff Mei, COO at BTSE, stated in a Telegram message that the Federal Reserve will likely keep interest rates unchanged this week as it monitors the potential economic impact of tariffs. According to Mei, with inflation gradually cooling and the labor market remaining robust, there appears to be no immediate need to adjust rates. The central bank is likely to await additional economic data before considering any major policy changes later in the year.
Some analysts have noted a gradual transition in tone, suggesting that officials may begin signaling a dovish pivot through subtle cues, even if they don’t formally announce it.
