Bitcoin braces for Fed impact amid market pullback
Bitcoin (BTC) is trading near $112,800 (-1.2%), reflecting cautious sentiment across the crypto market as traders await the Federal Reserve’s rate decision. Many investors are locking in profits and rotating into stablecoins, creating short-term pressure on liquidity.
Market Highlights:
1️⃣ Failed breakout at $116K led to roughly $176M in long liquidations, erasing recent gains.
2️⃣ Whale activity intensified — wallet Sequans moved 970 BTC (~$111M) to Coinbase, signaling potential selling pressure.
3️⃣ Liquidity thinning as traders adopt a defensive stance ahead of the Fed announcement.
Technical Outlook:
Key support: $112K — a breakdown could trigger a move toward $108.5K.
Upside potential: A dovish Fed tone may spark a rebound toward $117K and restore short-term momentum.
In this environment, Bitcoin’s reaction to macro signals will determine whether this is a brief pause — or the start of deeper consolidation.