The cryptocurrency market kicked off Tuesday on a mixed note, with Bitcoin dipping towards $106,000 and Ethereum remaining stable. Geopolitical events and the Fed's decision are making traders cautious.
Geopolitics and Fed Watch
Headlines from the Middle East are still driving some of the day’s volatility. New skirmishes between Israel and Iran nudged oil prices higher and raised concerns that risk assets might come under pressure just ahead of the Fed's policy announcement. Economists expect rates to remain at 5.25–5.50%, but any hints of a hawkish tone could dent today’s gains.
Bitcoin's Status
BTC briefly dipped towards $106,000 overnight before rallying to finish just above $106,500. A clean break above $108,000 would open the door to mid-$109,000s, while a slide below $106,000 could lead to another test of the $105,000 zone. Despite the seesaw trading, spot ETF inflows show institutional buyers are still entering the dips.
Altcoin Dynamics
ETH price is down 2% as traders booked profits ahead of expected Merge-upgrade news. XRP led the large-cap pack with a 1% rise, briefly touching $2.24. Solana (SOL) pulled back nearly 3%, trading around $152.27 after failing to hold the $155 support level. Meanwhile, PENDLE stole the spotlight among smaller tokens, surging over 3% on renewed DeFi fundraising optimism.
All eyes are now on Wednesday’s Fed statement and Chair Powell’s press conference. Will they hint at the timing of the first rate cut or maintain a hawkish stance? Additionally, expect U.S. retail sales data and developments from this week’s G-7 meeting.
