Bitcoin traded above $64,000 on Wednesday ahead of the Federal Reserve's rate decision at 2 p.m. ET, with the broader crypto market higher. About 70% of traders expect a sixth straight pause, but roughly 30% price a quarter-point hike — and Citadel Securities told clients it expects one.
Bitcoin cleared $64,000 on Wednesday, up 1% on the day, with the broader market green ahead of the Federal Reserve's rate decision at 2 p.m. ET, per CoinDesk data.
Ether added 1.7% to $1,909 and XRP led the majors at 2.6%. However, Bitcoin had slid below $63,000 in the previous session, tracking an AI-led global stock rout.
Traders price a sixth straight pause
A hold is the base case. About 70% of traders expect the Fed to keep its rate at 3.50% to 3.75%, a sixth straight meeting on pause, per CME data.
But roughly 30% now price a quarter-point hike, and the case has serious backers. Citadel Securities told clients it expects a surprise increase this week to shore up Warsh's inflation-fighting credibility, and UBS said such a move would not surprise it.
Meanwhile, the decision remains the key focus for investors, with uncertainty over the outcome keeping trading subdued. A more hawkish outcome than expected could weigh on cryptocurrencies and other risk-sensitive assets, while a dovish signal could bolster demand for digital assets.
Crypto holds up as AI selloff hits chipmakers
Bitcoin held relatively firm even as Asian equity markets came under renewed pressure. SK Hynix shares tumbled as much as 20% after the memory-chip maker posted record quarterly earnings that nevertheless failed to satisfy investors' elevated expectations.
Institutional demand has remained mixed. U.S. spot Bitcoin exchange-traded funds have recorded modest net inflows overall in July despite several sessions of outflows in recent days.
Beyond the Fed, investors are also monitoring earnings from Microsoft and Meta Platforms this week for further insight into AI spending trends.
Sources: CoinDesk, Investing.com
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