Bitcoin Braces for Fed Rate Decision: Bullish Momentum or Market Correction Ahead?

As the Federal Reserve prepares to announce its latest interest rate decision, Bitcoin and the broader cryptocurrency market are experiencing heightened volatility. Bitcoin, which had gained 4% over the past week, saw a slight dip of 1% today as traders cautiously position themselves ahead of the Fed's move. Market expectations are leaning toward a 25-basis-point rate cut, but the accompanying rhetoric could significantly influence investor sentiment. With liquidity thinning across exchanges, altcoins are particularly vulnerable to sharp price swings. This pivotal moment could either reignite bullish momentum or trigger a broader market correction, depending on the Fed's stance. Cryptocurrency practitioners remain optimistic, viewing any short-term volatility as a potential buying opportunity in the long-term bullish trajectory of digital assets.

Bitcoin Awaits Fed Rate Decision Amid Market Volatility

Cryptocurrency markets are on edge as the Federal Reserve prepares to announce its latest interest rate decision. Bitcoin, up 4% over the past week, dipped 1% today as traders brace for potential volatility. The Fed's move—widely expected to be a 25-basis-point cut—could either reignite bullish momentum or dampen sentiment if accompanied by hawkish rhetoric.

Liquidity remains thin across exchanges, with altcoins particularly vulnerable to shifts in risk appetite. Beyond the Fed, traders are monitoring big-tech earnings and Bank of Japan policy for further market cues. The dollar's recent strength has added pressure to crypto valuations, forcing portfolio reassessments.

Bitcoin’s Next Move Hinges on Fed Policy and Global Trade Developments

Bitcoin’s latest rally faced stiff resistance near $116,000 as traders await two critical macroeconomic catalysts: the Federal Reserve’s policy decision and US-China trade negotiations. The cryptocurrency has gained 10% since October’s sell-off but struggles to break through a wall of sell orders on major exchanges.

Order book data reveals concentrated selling pressure just above current levels, with $49 million in short positions liquidated recently. Open interest remains subdued at $31.5 billion—far below October’s $40 billion peak—as institutional players use rallies to reduce exposure while retail investors continue buying dips.

Spot Bitcoin ETFs tell a contrasting story, recording $260 million in net inflows over three sessions. A notable $500 million inflow occurred on October 21 when BTC briefly dipped below $108,000, suggesting strong institutional appetite at lower levels.

Germany’s AfD Proposes National Bitcoin Reserve Amid Sovereign Currency Debate

Germany's right-wing Alternative for Germany (AfD) party has drafted a parliamentary motion to establish a national bitcoin reserve, challenging conventional approaches to sovereign assets. The proposal follows the government's controversial sale of 50,000 seized BTC earlier this year—a stake now valued at $6.5 billion as Bitcoin trades near $115,000.

AfD leaders frame Bitcoin as both inflation hedge and sovereignty tool, emphasizing its capped supply and decentralization. The euroskeptic party's economic spokesperson noted: 'Strategic BTC reserves could insulate Germany from ECB monetary policies and eurozone instability.' While unlikely to pass in the current Bundestag, the motion signals growing institutional recognition of crypto as a reserve asset class.

MSTR vs. COIN: Crypto Stocks Face Earnings Test Amid Bitcoin Volatility

MicroStrategy (MSTR) and Coinbase Global (COIN) prepare to report quarterly earnings on October 30, with both stocks historically buoyed by cryptocurrency market rallies. MicroStrategy’s enterprise software business provides steady revenue, but its aggressive Bitcoin accumulation strategy introduces earnings volatility. The company holds BTC reserves as part of corporate policy, forcing quarterly recognition of unrealized gains or losses.

Wall Street anticipates a diluted loss of $0.10 per share for MSTR, an improvement from last year’s $1.72 loss. Coinbase, meanwhile, faces scrutiny over retail trading volumes and regulatory pressures. Bitcoin’s price swings remain the dominant factor for both stocks—a dynamic that could amplify post-earnings.

Brazilian Solar Producer Thopen Explores Bitcoin Mining for Excess Renewable Energy

Thopen, a Brazilian solar power producer, is evaluating Bitcoin mining as a solution to absorb surplus energy from the country's rapidly growing renewable sector. CEO Gustavo Ribeiro confirmed the company is assessing data centers and mining operations NEAR generation sites to address electricity oversupply challenges.

Brazil's solar power suppliers face frequent curtailment, limiting their ability to feed energy into the grid. Bitcoin mining presents an opportunity to monetize this stranded renewable energy. Thopen plans to position mining facilities near load centers, converting excess power into capital while supporting sustainable energy infrastructure.

The MOVE reflects a growing trend of renewable energy providers leveraging cryptocurrency mining as a flexible demand solution. Several mining companies are already in negotiations with Brazilian electricity providers, signaling potential for further industry convergence.

Strategy's $3.8B Bitcoin Windfall Fuels S&P 500 Inclusion Speculation

Strategy's third-quarter earnings are projected to showcase a $3.8 billion accounting gain from its Bitcoin holdings, according to 10X Research. The crypto intelligence firm estimates a 70% probability the company joins the S&P 500 index following the December 5 review, with potential inclusion taking effect December 19.

The anticipated windfall comes amid a dramatic slowdown in Strategy's Bitcoin accumulation. October purchases totaled just 778 BTC—a 78% drop from September's 3,526 BTC acquisition spree. This pullback coincides with both market corrections and shrinking premiums on the firm's NAV.

S&P Global Ratings maintains Strategy's B-minus credit rating, still categorizing it as speculative grade. Market watchers now scrutinize whether the Bitcoin-fueled earnings surge can outweigh credit concerns for index eligibility.