Bitcoin Holds Near $77K Ahead of Fed Decision

Image credit: Pexels

Bitcoin held near $77,000 on Wednesday as traders waited for the Federal Reserve’s policy decision and watched rising geopolitical tension around the Strait of Hormuz.

The largest cryptocurrency was trading at about $77,045 in early US hours, slightly up for the day. The move came after Bitcoin (BTC) once again failed to hold a push into the $78,000 to $79,500 resistance zone.

Fed Guidance Becomes the Next Trigger

Markets widely expect the Fed to leave interest rates unchanged at Wednesday’s meeting. The bigger question is what policymakers say about the rest of the year as oil prices rise and inflation risks move back into focus.

For crypto traders, that makes Chair Jerome Powell’s tone more important than the rate decision itself. A softer message could help risk assets, while a more cautious or inflation-focused stance could keep Bitcoin stuck below resistance.

CME FedWatch had priced in a 100% chance of no rate change before the meeting, with traders focused on Powell’s comments and upcoming US growth and inflation data.

Hormuz Risk Keeps Pressure on Markets

Geopolitical risk is also capping Bitcoin’s upside. Reports said the US was preparing to extend its blockade of Iranian ports as tensions around the Strait of Hormuz persisted.

The report followed Washington’s rejection of an Iranian proposal that would have reopened the Strait of Hormuz while delaying nuclear negotiations. Oil prices have climbed above $110 per barrel as the standoff continues, raising concerns that energy costs could feed back into inflation.

That matters for Bitcoin because rising oil prices can complicate the case for easier monetary policy and weigh on risk appetite.

Bitcoin Remains Stuck Below $80K

Bitcoin has repeatedly failed to clear the $80,000 area this month. BTC briefly rose to about $79,500 before dropping, while long liquidations increased as the market turned risk-off.

Analysts said the $78,000 to $79,500 range has become the key technical barrier, with profit-taking repeatedly cutting off advances. Near-term support is now being watched around $76,000 to $77,000.

That leaves Bitcoin boxed into a tight range. ETF inflows and fresh corporate buying, including Strategy’s latest purchase, have helped keep the market supported.

ETF Inflows Offer Support

The market still has support from inside crypto. US spot Bitcoin ETFs recorded $823.7 million in net inflows for the week ending April 24, marking a fourth straight week of positive flows, according to SoSoValue data.

Those inflows helped offset pressure from liquidations and profit-taking. Strategy also disclosed another Bitcoin purchase, adding 3,273 BTC for $255 million at an average price of $77,906.

For now, the setup is straightforward. Bitcoin may need either a softer macro signal or stronger ETF-led demand to make another credible attempt at $80,000. Without that, the mix of Fed uncertainty, higher oil prices and Hormuz risk could keep the market trading sideways near $77,000.