Bitcoin Holds Near US$77,000 Ahead of Fed Decision
Bitcoin trades at US$77,000 as markets price in an 85% chance of a rate hike. Institutional ETF outflows have slowed to US$13 million.
Bitcoin is trading at US$77,000. The price is down 6% from its recent high of US$82,000. Markets expect the Federal Reserve to raise rates by 25 basis points on Wednesday. Probability estimates for this move stand at 85%. This expectation follows August inflation data showing a 0.4% monthly increase.
Ethereum trades at US$2,540. Solana holds above US$101. These altcoins have shown more resilience than Bitcoin. Institutional selling pressure on Bitcoin ETFs has decreased. Net outflows dropped to US$13 million on September 11. This follows withdrawals of US$282.7 million on September 10.
Fed decision dominates market sentiment
Higher interest rates increase the cost of leveraged positions. Yield-bearing assets become more attractive to investors. Goldman Sachs now forecasts a 25 basis point rate increase. This shift reflects persistent inflation pressures. Bitcoin briefly reached US$80,000 before retreating on Friday.
Traders are adjusting positions ahead of the central bank meeting. The uncertainty surrounding the decision has increased volatility. Any signal of further tightening will likely pressure crypto assets. The focus remains on the September 15-16 meeting dates.
Technical levels define the trading range
CryptoQuant identifies US$81,700 as the key resistance level. Breaking this level would confirm a new bullish phase. Additional resistance sits at US$83,600 and US$88,700. Support is located at US$70,000. A strong accumulation zone exists between US$62,000 and US$65,000. Long-term holders accumulated 476,000 Bitcoin in this range this year.
The asset is currently boxed between these levels. The rebound over the past two weeks was approximately 24%. The trend remains constructive but faces significant overhead resistance. Market participants are monitoring these boundaries closely.
Institutional flows show signs of stabilization
US spot Bitcoin ETFs saw significant withdrawals earlier in the week. Outflows reached US$120.2 million on September 9. The pace of selling slowed by the weekend. DefiLlama data confirms the reduction in redemptions. This trend will be assessed when Wall Street reopens. ETF flows serve as a primary gauge of institutional demand.
