Bitcoin is currently trading at $76,800.64, down 3% in morning trading, as investors exercise caution ahead of the Fed's rate decision and other key data releases. Market maker Enflux notes that traders are hesitant to drive the price higher due to uncertainty surrounding the Fed's decision and the impact of oil prices on inflation.
The current price is below the short-term holder cost basis, which is seen as a proxy for buyer conviction. A clear signal from the Fed that oil-driven inflation is temporary could be necessary for bitcoin to break above key technical levels.
Meanwhile, a slowdown in AI demand could potentially slow down miner-driven selling, but the timing of such an event is uncertain. As a result, bitcoin is expected to trade tentatively, with its price movements likely to be influenced by macroeconomic factors rather than the Fed statement itself.