How Will Bitcoin React to FOMC Amid Ongoing Correction?

Bitcoin Braces for $60,000 Support as Speculation Heats Up Over Fed Interest Rate Decision

The crypto market has witnessed the heavy liquidation of almost $670 million amid the FOMC meeting expectation. While investors' expectations were set for the Federal Reserve to leave interest rates untouched, investors turned wary; hence, prices of Bitcoin and altcoins nosedived.

Bitcoin had lost 6% in a way that it tested the $60,000 support area, while ETH was dropping 8% to test $3,000. Altcoins were also deeper into correction as more or less board's gains were lost. The remarkable thing about the liquidation event is that it cost $670 million of both long and short positions - a fact highlighting increased market volatility.

Analysts at K33 Research said the market might continue to witness further downside volatility resulting from long liquidations-a signal that may insinuate how hard it would be for the market to recover so soon. The big players like Microstrategy were still buying Bitcoin, a show of confidence in the asset's long-term outlook.

As for what was expected at the FOMC meeting, the market didn't doubt the Fed would look to sticky inflation rates and improved unemployment figures, so there was no cause to believe immediate rate cuts would be imminent. Lower inflows into Bitcoin ETFs and now the prospect of interest rate cuts in the US were two major reasons contributing to conservative sentiments in the market.

It has been tough for the price action of Bitcoin to hold above $60,000, and key support levels became a close watch by the market players. Traders and analysts said the upcoming FOMC decision would take some pressure off the severely oversold crypto assets and might give way to a relief bounce.

Traders haven't been too aggressive in their bets with the rally of Bitcoin into key support levels, expecting it to further go downhill when support around $60,000 breaks. The result of the FOMC meeting would affect short-term price action in the Bitcoin market.

In a nutshell, the market witnessed increased liquidation in the cryptocurrency space on the back of uncertainty over the FOMC meeting, where Bitcoin couldn't sustain above its key support levels. Traders were looking ahead for more clarity from the Fed for further direction of the market in the coming days.