Crypto Dip Before Fed Decision as Bitcoin Nears $113K
Crypto prices dipped 1.5% ahead of today’s Federal Reserve policy meeting, with Bitcoin trading near $113,000 and Ethereum around $4,016. Major altcoins including BNB, XRP and Solana also eased, dragging the total market cap to about $3.9 trillion. Market indicators showed open interest steady near $165 billion and a neutral Crypto Fear & Greed Index at 50–51, while liquidations climbed to $521 million mostly from long positions. Futures traders price in a 96–97% probability of a 25 bp rate cut to 3.75–4.00% after softer inflation data. Despite the dip in crypto prices, institutional demand remains robust, with spot Bitcoin ETFs seeing $149–202 million and Ethereum ETFs $134–246 million in recent inflows. A dovish Fed outcome could lift Bitcoin toward $115,000–$118,000, whereas a hawkish tone may retest support at $108,000. Traders now await Chair Powell’s press conference for fresh volatility signals.
Neutral
While the 1.5% pullback in crypto prices ahead of the Fed meeting reflects cautious investor sentiment, the strong ETF inflows into Bitcoin and Ethereum indicate sustained institutional interest. Market indicators such as steady open interest and a neutral Fear & Greed Index point to a balanced outlook. The outcome of the Fed decision and Chair Powell’s comments will likely dictate near-term volatility. A dovish stance could trigger a bullish move, whereas a hawkish tone may deepen the pullback. Overall, the market is in a waiting pattern, justifying a neutral view on price impact.