Bitcoin traders face pressure as markets shift before a major US interest rate decision.
- Bitcoin struggles around $115,000 with a high risk of long liquidations.
- Traders expect market moves based on Wednesday’s Federal Reserve meeting.
- Gold reaches a new all-time high of $3,703 before pulling back.
Bitcoin Price Faces Pressure
Bitcoin (BTC) saw unstable price movements as US markets opened on Tuesday. Its price moved between $114,800 and $115,300. Data from exchange order books showed large amounts of long positions in danger of being liquidated below the current level. This means that if the price drops a little, many traders could lose money quickly.
Trading group TheKingfisher said those liquidation zones show where many traders are stuck. They believe prices may shift toward these “pain points.” That’s where most losses could happen, and it often leads to sudden moves in price.
Market Sentiment Turns Negative
Popular trader Skew said that the Bitcoin market is acting strangely. There are signs that prices are being pushed in certain directions on purpose. He said more traders are starting to bet against Bitcoin, expecting the price to fall. This comes right before the Federal Reserve announces its new interest rate policy.
The market expects the Federal Open Market Committee (FOMC) to lower interest rates. A drop of 0.25% would be the first cut this year. Traders often adjust their positions ahead of such major economic events, and in this case, more short positions are growing. That means traders think prices may fall in the short term.
Gold Outperforms Bitcoin
Before the FOMC meeting, many risky investments showed weakness. US stocks were slightly down at the open. But gold reached a new record high of $3,703 before falling slightly. Analysts say both gold and Bitcoin are reacting to expected changes in the US economy.
Trader Jelle pointed out that Bitcoin often follows the path of gold, but with a delay. So far in 2025, gold has risen by 40%, while Bitcoin is up only 23%. This suggests that Bitcoin might rise further in the future if the trend continues. However, there’s still high uncertainty in the short-term price action.
Source: cointelegraph.com
