A fog of uncertainty continues to hang over the global markets as crypto assets act sideways before this week’s American Federal Reserve Meeting.
While shares briefly found their foot on Monday, Crypto Markets Defense remained after Friday’s Futures Liquidation of $ 1.2 billion.
Bitcoin rose over $ 108,000 in the US morning session Monday and then slipped to as low as $ 106,500 due to profit. However, buying activity later moved prices over $ 107,000 in the Asian morning hours on Tuesday.
BTC ETFs experienced $ 1.4 billion in net flow over the past week and confirmed the role of spot products as a price shock, even during wider withdrawals.
Meanwhile, ether (ETH) 1.5% over 24 hours to $ 2,609, still afterwards Bitcoin’s ETF-led strength. Solana’s Sun and Trx remained stuck, 1.5% and 2.1% respectively, although the wider tone remains careful among the traders.
Gold and oil, both traditional safe port during geopolitical crises, rose in early trade after US President Donald Trump unexpectedly called for the evacuation of Tehran in a statement from the G7 summit. It triggered a mini-rush for defensive assets.
However, Bitcoin launched the move in a well -known pattern, according to analysts.
“Bitcoin often shows a delayed reaction to macro trends, so while gold and oil grow on geopolitical and inflation pressure, BTC can take time to catch up,” said Eugene Cheung, head of commercial officer at OSL, in a note to Coindesk.
“If the risk mood is changing and investors are looking for alternative value stores, Bitcoin could see renewed momentum in the coming weeks if this week’s fat meeting comes as expected for investors.”
This expectation is now the center. Markets are overwhelming pricing in a grip from Fed, but attention will be focused on the tone and language of President Powell’s comments, especially with regard to inflation and customs.
“We expect Fed to keep the rates stable this week when they wait to see how duty will affect the economy,” Jeff Mei, COO of BTSE, said in a telegram message. “Inflation is facilitated and jobs are strong, so there is no urgency to cut or raise yet. They will probably wait for more data before they make big features later in the year.”
Others see a subtle shift arise, stating that a Dovish Pivot may not be advertised directly, but the seeds could be planted.
“Fed is likely to see some Dovish risk on the margin,” said Augustine fan, head of insight on SignalPlus.
“The market will see if the committee will use the recent string of downward inflation mines and weaker unemployed claims to justify a more pronounced Dovish swivel. We do not expect a whole lot out of the meeting and that in the short term focus will remain on the Iran-Israel situation,” Fan said.
