Bitcoin Below $80,000 as Traders Await U.S. Economic Data, Fed Rate Decision
By Joseph WilkinsBitcoin remained below $80,000 on Tuesday as cryptocurrency traders eye several potential catalysts, including U.S. inflation and GDP data, as well as the Federal Reserve's interest-rate decision.The flagship cryptocurrency was 0.4% lower at $79,652, slipping from above the $80,000 threshold during the session as the risk-off mood among traders persisted. Anthropic's IPO paperwork helped lift AI-linked stocks following Friday's down session and boosted the Nasdaq composite, but bitcoin was largely excluded from the bounce in equities."There is plenty of potential for surprises and volatility, but a solid U.S. GDP reading and good tech results are likely to provide the foundation for a risk recovery," IG's Chris Beauchamp said. "The past month's churn in stocks is more rotation than anything else, and a recovery in tech names should see cryptocurrencies boosted as well."Market participants are looking ahead to a host of price-driving events this week. The Federal Reserve's interest-rate decision comes Wednesday, with the CME FedWatch tool suggesting a likelihood of just under 90% that policymakers will hold interest rates steady. Traders will be watching for any hawkish clues in Fed chair Kevin Warsh's speech."With a Fed rate hold largely priced in and nearly $11 billion in Bitcoin options approaching expiry, markets face a test of policy expectations, spot demand and derivatives positioning," said Bitget Wallet Research, a crypto exchange. Hawkish Fed signals could reinforce expectations of higher yields and a stronger dollar, while softer guidance could offer a tailwind for bitcoin, the analysts added.Investors will also be monitoring the personal consumption expenditures index--the Fed's preferred inflation gauge--released on Thursday.Ether was down 0.6% at $2,307.Write to Joseph Wilkins at [email protected]