Bitcoin Near $94K Before Fed Decision on Rates

Bitcoin climbed past $94,000 on Tuesday, though trading desks signaled hesitation about a sustained year-end rebound. The Federal Reserve is widely expected to trim interest rates this week, but investors are preparing for the possibility that policymakers may pause after December.

A 25-basis-point cut is anticipated at Wednesday’s conclusion of the Fed’s policy meeting. Futures and prediction markets indicate increased expectations that Jerome Powell’s comments could look ahead to a cautious stance in January, with officials still focused on inflation while employment data softens.

Crypto analysts say the tone of Powell’s remarks may guide the next major move in Bitcoin.

Nic Puckrin, co-founder of Coin Bureau, wrote on Tuesday that a hawkish press conference could weigh on digital assets into year-end. “Despite new buying by Strategy, Bitcoin has not regained upward strength. A finish under $100,000 for 2025 is still possible,” he said.

Puckrin added that political developments in 2026 could revive sentiment. President-elect Donald Trump is expected to nominate a new Fed chair once Powell’s term ends in May. Former White House economic adviser Kevin Hassett has been viewed as a leading candidate and is seen by the industry as favorable toward digital asset growth.

Recent trading ranges show Bitcoin stuck between $81,000 and $94,000 following its sharp drop from October’s record near $126,000.

Compass Point analyst Ed Engel cautioned that a breakout above the current range appears unlikely until buyers return at higher volumes. Engel estimates that investors who entered the market in the past six months have a cost basis near $103,000. With prices below that level, he said traders are more inclined to sell rebounds than accumulate dips.

Bitcoin is currently down about 2% in 2025, setting up its weakest full-year result since 2022, when the market lost more than 60%. The divergence from U.S. equities has widened as the S&P 500 posts a strong annual gain.

Also Read: Fed Meeting Live Updates: Expected Third Rate Cut and New 2026 Forecasts