Bitcoin Tests $94K Before Pullback Ahead of Fed Decision
Bitcoin briefly climbed above $94,000 on Tuesday before retreating to around $92,500 in Wednesday’s Asian session, reigniting bullish sentiment but leaving the market cautious ahead of the Federal Reserve’s key policy announcement.
Asian equities were mixed as investors awaited clarity on the Fed’s next steps and Chair Jerome Powell’s final press conference of 2025.
Altcoins Performance
Altcoins showed varied moves. Ether gained 7% to $3,320, extending its weekly rise to nearly 10%. Solana added over 5%, Dogecoin rose 5%, and Cardano led with an 8.5% daily gain and nearly 6% for the week. Most tokens pulled back 1–2% in Asian morning trading as traders booked profits. XRP rose 2% but remains down 4% weekly, while BNB, USDC, and TRX held steady. Liquidity in smaller tokens remained thin, reflecting uneven December trading conditions.
Volatility and Sentiment
Bitcoin’s early rally was supported by rising social sentiment and retail optimism, according to Santiment. However, BTC slipped below $93,000 later, raising debate over whether the move was a breakout or a stop-hunt within the $86,000–$94,000 range. CF Benchmarks analyst Mark Pilipczuk noted that realized volatility exceeding implied volatility can indicate market exhaustion, often preceding a bottom. Bitget CEO Gracy Chen said Bitcoin’s $86,000–$94,000 consolidation reflects a market lacking enough anchors for a decisive move.
Global Context & Outlook
Chinese stocks fell on higher inflation, Japanese equities edged lower, and South Korea and Taiwan posted modest gains. Silver hit a record high, and the dollar steadied. Bitcoin’s next move will depend on whether it can reclaim the $94,000–$96,000 range after Powell’s remarks—or if macro caution drives it back toward the mid-$80,000s.
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