Crypto Market on Hold Ahead of the Fed Meeting
Ahead of the Fed meeting, global financial markets are leaning toward a cautious risk-on stance, with U.S. equities staying in the green and several indices hovering near or at record highs. The weaker U.S. dollar reflects expectations that the Fed will keep interest rates unchanged and maintain a relatively less hawkish tone. Gold and silver continue to attract safe-haven flows, showing that investors are still hedging against the risk of an unexpected Fed message. Liquidity in equity markets has improved, but it is largely driven by pre-event positioning rather than long-term capital allocation.
In the crypto market, the current upside move is mostly technical and sentiment-driven, with no clear sign of strong, committed capital returning yet. Bitcoin and Ethereum remain in their long-term uptrends, but short-term price action is heavily influenced by derivatives markets. Elevated funding rates and open interest make prices more vulnerable to volatility ahead of the Fed decision. Altcoins remain highly selective, with capital rotating only into narratives with clear conviction. Overall, crypto is in a wait-and-see mode, poised for a breakout if the Fed turns dovish, but equally exposed to sharp shakeouts if market expectations are disappointed.
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