Crypto Market Steadies as Traders Await Fed Rate Decision and U.S.–China Trade Breakthrough
The cryptocurrency market paused midweek as investors positioned for two key macro events — the Federal Reserve’s interest rate decision and a potential trade breakthrough between the U.S. and China.
Bitcoin (BTC) slipped slightly to around $113,100, while ether (ETH) hovered near the crucial $4,000 support zone, reflecting cautious sentiment across digital assets.
Market participants expect the Federal Reserve to lower its policy rate to a range of 3.75%–4.00% later Wednesday. A decision to hold steady at 4.00%–4.25%, however, could strengthen the U.S. dollar and weigh on risk assets, including cryptocurrencies.
Attention also turned to diplomatic developments, as Chinese President Xi Jinping and U.S. President Donald Trump prepared to meet to finalize a long-discussed trade agreement. Analysts noted that a resolution could bolster U.S. equities — and by correlation, support bitcoin’s price — given the cryptocurrency’s tendency to move in tandem with broader risk markets.
With both macro catalysts still in play, traders expect limited directional momentum until after the Fed’s announcement and trade talks conclude.
