The price of Bitcoin is hovering at $90,399 as market participants anticipate a pivotal Federal Open Market Committee (FOMC) meeting. Analysts suggest that a 25 basis point rate cut could provide the momentum needed for BTC to target the long-awaited $100,000 mark.
Despite recent price struggles, the sentiment surrounding Bitcoin could shift significantly based on the FOMC”s decisions. The latest observations indicate a notable shift in the short-term holder (STH) to long-term holder (LTH) supply ratio, which recently increased from 18.3% to 18.5%. This uptick indicates a rising number of short-term holders in the market, a factor that could contribute to increased speculative trading and liquidity.
This higher STH presence could lead to greater volatility in Bitcoin prices. Historically, such holders tend to sell when they see profits, which can limit potential upward movements. The FOMC”s forthcoming rate decision could act as a catalyst, depending on how these short-term holders respond. If they choose to sell into strength following a rate cut, it may hinder sustained upward momentum.
Moreover, Bitcoin“s percentage of supply currently in profit has seen a slight increase from 66.5% to 67.3%. While this rise is encouraging, it remains significantly lower than the 98.4% observed during strong bull markets. This suggests that many holders are still facing losses, indicating a cautious market environment where investors are likely to wait for clearer macroeconomic signals before making commitments.
As Bitcoin attempts to establish $90,400 as a support level, a decisive break above this point could pave the way for a potential retest of $95,000. Successfully clearing this resistance would likely energize the market, propelling BTC toward the much-anticipated $100,000 threshold. However, should short-term holders decide to capitalize on any gains, a failure to hold above $90,400 could lead to a retreat back towards $86,822, jeopardizing bullish prospects.
In summary, the upcoming FOMC meeting is crucial for Bitcoin“s immediate trajectory. Market participants are closely watching the response of short-term holders to any shifts in sentiment following the rate cut, as this could significantly influence price dynamics in the near future.
