Crypto Market Steadies as Traders Await Fed Decision, U.S.–China Trade Breakthrough
The crypto market entered a holding pattern midweek as investors awaited two major catalysts — the Federal Reserve’s interest rate decision and potential progress in U.S.–China trade negotiations.
Bitcoin (BTC) slipped modestly to around $113,100, while ether (ETH) continued to test the key psychological level of $4,000 as traders kept positions light ahead of macro headlines.
Markets are widely expecting the Fed to cut rates by 25 basis points, lowering the target range to 3.75%–4.00%. However, if policymakers choose to hold rates at 4.00%–4.25%, analysts caution that a stronger U.S. dollar could trigger short-term selling pressure across risk assets, including crypto.
Attention also turns to Asia, where Chinese President Xi Jinping is scheduled to meet U.S. President Donald Trump as trade talks near a potential resolution. A successful agreement could boost investor sentiment and lift both U.S. equities and digital assets, given bitcoin’s increasingly positive correlation with traditional risk markets.
After several weeks of choppy trading, the broader crypto market is now consolidating as participants await fresh direction from macroeconomic and geopolitical developments.
