Cryptocurrency markets are showing signs of caution as investors await the Federal Reserve’s interest rate decision scheduled for later this week. Bitcoin prices have dipped below $95,000, reflecting market uncertainty tied to broader economic policy signals.
The central bank is widely anticipated to hold interest rates steady at their current levels. Federal Reserve Chairman Jerome Powell has previously indicated a cautious approach, citing concerns about persistent inflation and potential economic disruptions.
Increased focus on macroeconomic signals, including the Fed's stance, marks a shift from previous market cycles where internal crypto dynamics played a larger role in price movements.
Recent tariff announcements by Donald Trump, such as new levies on foreign-made films following earlier tariffs on goods like steel and aluminum, have stirred broader market concerns about trade tensions and their potential impact on inflation. This adds another layer of external pressure influencing assets like Bitcoin.
While Bitcoin dipped below $95,000 Monday, other parts of the cryptocurrency market have also faced pressure. Ethereum has seen declines, as have meme coins like Dogecoin and Pepe. XRP is also trading lower.
Market observers are closely watching the upcoming FOMC meeting for forward guidance from the Federal Reserve. Crypto trader Michael van de Poppe noted that while gold prices have peaked ahead of the meeting, Ethereum and altcoins continue to decline.
Ali Martinez, a crypto chart analyst, observed that Dogecoin is testing support around $0.167. Holding this level could enable a rebound.
Investors are evaluating how the Fed’s communication and any potential unexpected policy signals could affect market sentiment and price action for digital assets in the near term.
“It’s acting like a high-beta macro asset right now,” said crypto strategist Lina Zhang. “Once policy stabilizes, Bitcoin could resume its role as a global hedge.”
