Bitcoin remained below $76,000 on Wednesday as cryptocurrency markets awaited the US Federal Reserve’s latest interest rate decision.
BTC traded near its monthly lows after falling to around $74,960 on Tuesday. Market expectations pointed to a 93% probability of a 0.25 percentage-point rate hike, which would take the federal funds rate to a range of 3.75% to 4%.
The Federal Reserve’s decision has become a key focus for Bitcoin traders as higher interest rates can affect demand for risk-sensitive assets such as cryptocurrencies. Markets are also watching the Fed’s guidance for clues about the future direction of monetary policy.
On-chain data indicates that buying interest has strengthened around lower price levels. Glassnode reported that a larger share of resting buy orders has moved closer to Bitcoin’s current market price.
Exchange order-book data points to around $68,000 as an important potential support level. Bitcoin’s short-term holder cost basis was estimated at approximately $71,300, providing another level traders may monitor.
Glassnode also identified a potential lower support zone between $62,000 and $65,000 if the current trading range breaks and existing bids are absorbed.
Bitcoin’s price movement is also taking place against a backdrop of changing global monetary policy and higher energy prices.
The European Central Bank recently raised rates by 0.25 percentage points, while the Bank of Japan is expected to announce its own rate decision later this week.
Meanwhile, rising oil prices have added to inflation concerns. US West Texas Intermediate crude reached $106.70 per barrel on Tuesday, its highest level since May 4.
With Bitcoin remaining under pressure, traders are now closely watching the Federal Reserve’s rate decision and its comments for potential signals about the cryptocurrency market’s next direction.
