Crypto Markets Hold Breath as Fed Decision Looms - Will Digital Assets Break Free or Stall Further?

Digital assets hover in neutral as traders brace for Powell's next move.

The Waiting Game

Cryptocurrency markets hit pause mode across major exchanges—no dramatic plunges, no explosive rallies. Just the eerie calm before the regulatory storm.

Fed Watch Dominates Sentiment

Traders obsess over interest rate clues instead of blockchain metrics. Traditional finance once again hijacks the crypto narrative—because nothing moves digital markets like old-school monetary policy.

Volatility Compression Signals Big Move

Tight trading ranges suggest pent-up energy. When the Fed speaks, markets break—either skyrocketing on dovish hints or cratering on hawkish surprises.

The Institutional Paradox

Wall Street demands regulatory clarity while simultaneously trading every Fed whisper. Crypto's decoupling myth meets its reality check: macro still rules everything.

Where's the real innovation? In decentralized finance bypassing traditional gatekeepers—not in watching central bankers play interest rate roulette.

Bitcoin$110,608‘s price stalls at $110,500, and volatility has significantly decreased. Altcoins are also trading sideways, indicative of a broader market stagnancy. As discussions on the Federal Reserve’s independence increasingly reach courtrooms, global markets face pressure in the medium term. Consequently, cryptocurrencies have struggled to recover throughout September.

Bitcoin (BTC)

As ETF inflows turn negative again, investor risk appetite waned on Thursday and Friday. Investors concluded the week with net withdrawals from ETFs, opting for a cautious wait-and-see approach. It is not surprising to see investors pull back during such risky periods.

Liquidations have decreased by 58% in the past 24 hours, and overall trading volume has declined similarly. BTC has failed to make higher peaks for an extended period, exhibiting subpar performance for around 24 days. While maintaining support at $108,000 for now, recent tests at the end of August and early September have weakened this support.

Despite anticipated movements later in the day, daily trends are expected to remain sideways. Volumes are weak, investor sentiment is cautious, and BTC may see accelerated sell-offs if it closes below $110,000 without reclaiming support at $112,500.

Cryptocurrencies

As movements in BTC are unexpected, a significant volatility environment is also improbable for altcoins. Until the Fed meeting, it remains challenging to be optimistic about altcoins, making it crucial for John Cook’s situation to be clarified soon. Over the past year, crypto markets have constantly experienced declines due to external influences and pressures.

Even with significant developments in crypto, the combination of tariffs, the Fed’s independence, wars, and sanctions equate to many similar experiences investors have become immune to.

In the past 24 hours, WLFI has seen a surprising surge, moving considerably away from its pre-sale price. A gain of over 20% was unexpected. We had previously warned that those seeking easy short-sell opportunities might fall into such traps. OKB and ZEC are among other altcoins achieving double-digit gains today.

The situation for altcoins is not particularly bright, especially for Ether, which is crucial. Friday’s $446 million outflow was unprecedented for a long time. This suggests a potential MOVE below $4,000. Another concerning development is the loss of the 0.039 level in the ETHBTC pair, indicating a potential downturn to levels unseen in the past 17 days.