Bitcoin halts after approaching $115.000: investors await the Fed

Bitcoin's upward momentum stalls near $116.000. The market enters a pause, with its eyes fixed on the imminent Federal Reserve decision.

The digital asset market has entered a state of suspension. After several days of sustained optimism that led Bitcoin to challenge the $116.000 barrier, the momentum abruptly faded. 

In the last few hours, the price of BTC has fallen sharply, marking a volatile range that oscillated between euphoria and caution, hitting lows close to $112.400. 

This "abrupt halt" is a response to the shadow of a giant: US monetary policy. All eyes in the global financial sector, from Wall Street to the smallest retail investor, are fixed on what will be announced today at the Fed meeting.

What explains the recent rollercoaster ride in Bitcoin's price?

The narrative of the last 24 hours can be read directly in the market data. According to the cryptocurrency price tracking platform CoinGecko, the day was marked by extreme volatility. 

The price of BTC reached a high of $116.041, a level that suggested the continuation of an upward trend that had already accumulated more than 4% gains in seven days. However, a surge in supply appeared at that level. The correction was swift, bringing the cryptocurrency to its current price, around $112.600. This move not only erased intraday gains but also established a climate of uncertainty.

What stands out most about Bitcoin's recent movement is the trading volume, exceeding $67.000 billion in a single day. This isn't a simple fluctuation; it clearly reflects an intense battle between buyers and sellers. Furthermore, with a market capitalization surpassing $2,24 trillion, Bitcoin is no longer a marginal asset. Its size has positioned it as a significant element within the global macroeconomic context.

Fear is once again dominating the crypto market as investors await the Fed's decision.

While price charts show what happened, sentiment indices explain how market participants feel. «Crypto Fear and Greed Index»An indicator compiled by CoinMarketCap that analyzes the collective mood offers a clear diagnosis: fear has returned. 

Currently, the index marks 39 points...placing itself firmly in the "Fear" zone. This data is crucial due to its immediacy. Just yesterday, the indicator stood at 42 points, a level considered "Neutral." 

For experts, this slippage, though seemingly small, is significant. It shows that the optimism built up last week—when the index was coming from a much lower level of 29 points—was fragile. The proximity of the Fed's announcement has been enough to reverse that confidence and push investors back into a defensive stance.

In the current context, the narrative of "wait-and-see" The wait-and-see approach has prevailed, resulting in thousands of individual decisions not to commit new capital. Apparently, participants prefer to secure the gains made during Bitcoin's recent surge rather than risk a negative surprise from the central bank. This widespread caution has temporarily capped the price of the leading cryptocurrency. 

The digital asset market has thus demonstrated its deep integration with the traditional financial system; it no longer operates in a vacuum, but responds directly to expectations of global monetary policy. Attention is now focused on whether the Fed will validate hopes for a rate cut, which could reignite the upward momentum of crypto assets, or whether it will impose a dose of reality that cools current expectations.