Bitcoin ($BTC) is currently treading on uncertain ground, with trading volumes at notably low levels. All eyes are now on the upcoming Wednesday’s U.S. Federal Reserve monetary policy decision, which is shaping the short-term outlook for crypto markets.
While there is a 99% probability that the Fed won’t announce any rate cuts, the markets are expected to start pricing in that outcome before Wednesday, potentially leading to a short-term market dip. The question is not "if" there will be a drop, but how deep — possibly testing the $91K to $88K range for Bitcoin.
More critical than the rate decision itself will be Federal Reserve Chair Jerome Powell’s economic projections, which could provide insights into the future direction of monetary policy. If the Fed indicates a shift toward a looser policy stance, markets could react positively, possibly rebounding after the initial dip.
Adding to the volatility, the next CPI (Consumer Price Index) inflation print is due on Tuesday, which will further shape market sentiment. These two key events — the Fed meeting and the CPI data — make the next seven days especially pivotal for Bitcoin and the broader crypto market.
Despite short-term risks, the long-term sentiment remains cautiously bullish. From a dominance perspective, Bitcoin dominance (BTC.D) could potentially rise to around 67% before we see the anticipated drop. Meanwhile, Ethereum (ETH) may correct down to the 0.016–0.017 BTC range, aligning with a broader market shift — with Bitcoin possibly topping while Ethereum bottoms out.
In summary, while a temporary decline might be on the horizon, the broader outlook could turn bullish if upcoming economic signals support market growth. This is a crucial week for crypto traders and investors to stay alert and adapt to fast-changing developments.
