Bitcoin Rises on Market Optimism Ahead of Fed Decisions

Bitcoin posted strong gains, nearing the $104,000 mark, fueled by market expectations ahead of the upcoming U.S. Federal Reserve meeting. Experts and developers from OTS Capital explained that the current market movements stem largely from investors’ attempts to anticipate outcomes — a common behavior in cryptocurrency markets, which often react sharply to unconfirmed speculation.

The experts confirmed that the recent surge in Bitcoin was driven by “buying the rumor,” as traders positioned themselves for a possible dovish signal from the Fed that could further ease monetary policy, boosting demand for high-risk assets such as digital currencies. Ongoing “uncertainty” continues to keep market volatility elevated.

‍

Impact of Trade Tensions and Institutional Momentum

While broader market sentiment has also been supported by signs of easing U.S.-China trade tensions, Bitcoin remains more sensitive to direct economic factors like monetary policy decisions.

Additionally, BlackRock’s recent disclosure of its increased exposure to Bitcoin during the first quarter of 2025 — totaling approximately $5.43 billion — has naturally boosted institutional confidence in the digital asset.

The surge in capital inflows into Bitcoin-focused exchange-traded funds (ETFs) has helped reduce the available supply of Bitcoin on the market, supporting price stability. This trend has become more noticeable as major institutional players increasingly participate in the crypto space.

‍

Cautious Outlook and Range-Bound Trading Ahead of Key Events

Despite the recent rally, Bitcoin trading remains confined within a range between $80,000 and $100,000 since the beginning of the year. As uncertainty looms over upcoming Fed policy decisions, interest rate movements, and international trade negotiations, markets are closely watching how these developments could impact the performance of alternative assets, including cryptocurrencies.

‍