Bitcoin is trading below $65,000 as markets turn their focus to the first Federal Open Market Committee meeting chaired by Kevin Warsh, who confronts inflation near a three-year high and diminished hopes for near-term rate cuts. The cryptocurrency has ground sideways in recent sessions, reflecting broader uncertainty across risk assets.
The Fed is expected to hold rates steady during this two-day meeting, according to The Block, with Warsh's leadership at the helm potentially resetting the central bank's policy trajectory. Crypto Briefing notes that rising inflation and geopolitical tensions could redefine the Fed's approach, with direct implications for global markets and speculative assets like Bitcoin.
On-chain data presents a mixed picture for Bitcoin's valuation. Coinbase CEO Brian Armstrong made a bullish call that a bottom near $60,000 is likely. However, BeInCrypto reports that while one macro model suggests Bitcoin looks cheap at current levels, two on-chain gauges indicate that the capitulation typically seen at past market bottoms has not yet arrived.
The regulatory backdrop adds another layer of complexity. Meanwhile, other crypto headlines touch on Binance's adaptation to MiCA rules in Europe, FTX claims payout progress, and an incomplete US-Iran deal, though these are secondary to the dominant FOMC-driven narrative.
Market cap context places Bitcoin's dominance near 50%, with correlation to equities elevated as traders price in the implications of a hawkish Fed stance. The outcome of this week's FOMC meeting will likely set the tone for digital assets through the second half of June.