Bitcoin held steady around $116,500 on Wednesday morning, with traders focused on the upcoming decision from the U.S. Federal Reserve. The wait is also for what Fed cuts may mean for interest rates and the broader economic outlook. The price reflects a modest recovery from late-August losses, and the crypto market more broadly is reacting to signals that a rate cut may be nearing.
However, just afternoon, the price has started to waver again. The world’s largest cryptocurrency has registered a range between $114,864 and $117,303 over the last week, with traders closely watching resistance levels that could determine its next move.
With the Feds being the driving factor right now, widespread expectation is that the rates will get cut by at least 25 basis points at its next meeting. Some analysts believe a larger 50 bps cut could be on the table, depending on recent signs of a cooling labor market in the U.S. That said, sticky inflation remains a concern, and Fed Chair Jerome Powell is likely to address those pressures and trade policy impacts in upcoming statements.
Another interesting indicator is the amount of Bitcoin held in centralized exchanges has dropped to its lowest in nearly two years. This suggests more coins are being moved into private storage, potentially reducing sell-pressure. Advocates see this as a bullish sign if accumulation continues.
Other major cryptocurrencies remain relatively muted as the Fed’s rate decision looms. Ethereum slipped slightly, XRP saw modest gains, while Solana and various altcoins moved within tight ranges. Many traders are cautious, waiting for clearer guidance from the U.S. central bank.