Bitcoin hovers near $64,000 before divided FOMC meeting
Bitcoin traded near $64,000 as oil jumped, chip stocks sold off and Fed rate odds split sharply before the July decision.
By Theo Nakamura · Staff Writer
· 3 min read
Bitcoin traded around $64,000 on Wednesday as the bitcoin FOMC meeting setup grew more tense for retail investors watching crypto, oil and stocks at the same time. Cointelegraph, citing TradingView data, reported that BTC/USD failed to extend a rebound at the Wall Street open after touching an 11-day low of $62,700 the previous day.
The move came as several pressure points hit risk assets, a term for markets such as stocks and crypto that tend to react strongly when investors become more cautious. Cointelegraph said a sell-off in Asian chip stocks continued to weigh on U.S. markets, with traders focused on debt concerns tied to semiconductor and AI companies.
Geopolitics added another layer. Cointelegraph reported renewed concern over the U.S.-Iran war after U.S. President Donald Trump told Fox News, “We’ll be hitting them hard. They’re going to get a beating,” as strikes continued between the two sides.
Oil reacted quickly. According to Cointelegraph, WTI crude rose 7.6% and Brent crude gained 5.4%. Higher oil prices can feed into the Consumer Price Index, the main U.S. inflation gauge, because fuel and energy costs affect household bills and business costs. Inflation readings can influence what traders expect the Federal Reserve to do with interest rates.
How does the Fed decision affect Bitcoin?
The Federal Open Market Committee, or FOMC, sets the Fed’s target range for short-term interest rates. Higher rates can make cash and bonds more attractive compared with speculative assets, while lower or steady rates can reduce that pressure, so crypto traders often watch Fed decisions for volatility.
The July decision is drawing extra attention because market expectations are split. The CME Group FedWatch Tool showed a 66.3% probability that rates would stay at 3.5% to 3.75%, while a 0.25 percentage-point increase had 33.7% odds, according to Cointelegraph.
The Kobeissi Letter said on X that expectations for the Fed decision were “among the most divided in recent history.” Cointelegraph reported that Fed Chair Kevin Warsh is scheduled to release the FOMC statement and hold a press conference, with traders looking for hints on future policy after what the outlet described as less guidance from Warsh than from his predecessor.
Where are traders watching Bitcoin levels?
Cointelegraph said Bitcoin has been trading within a range shaped by its 50-day simple moving average and 50-day exponential moving average. A moving average smooths recent price action into a trend line, giving traders a quick way to compare the current price with its recent history.
The range has been in place since mid-July, according to Cointelegraph, with attempted breakouts failing on both sides. Data from CoinGlass showed possible liquidation clusters near $63,500 and $64,900. Liquidations happen when leveraged trades are automatically closed because the trader no longer has enough collateral to support the position.
Market activity also looked muted beneath the surface. K33 Research said in a Tuesday bulletin that spot market volume was at its lowest level since July 2023. The firm added that CME open interest remained near multi-year lows, perpetual futures open interest had stalled around 300,000 BTC and average daily spot volume for the month was $2.2 billion. Open interest measures outstanding derivatives contracts, while perpetual futures are crypto derivatives that do not have an expiration date.
Cointelegraph also reported that retail interest in Bitcoin and the broader crypto market has faded since crypto’s October 2025 all-time highs, while AI stocks have attracted investor attention. That makes the Fed decision, oil shock and chip-stock weakness a combined test for Bitcoin’s current trading range.
This story draws on original reporting from Cointelegraph.
