Bitcoin in ‘dip-buying mood’ as BTC price skirts $105K into FOMC

Bitcoin (BTC) stayed below $105,000 on Dec. 18 as markets awaited the next US Federal Reserve interest rates decision.

Bitcoin traders see Fed rate cut confirmation

Data from Cointelegraph Markets Pro and TradingView showed BTC price support retests characterizing the landscape around the day’s Wall Street open.

Due at 2:30 pm Eastern Time, the Federal Open Market Committee (FOMC) announcement on rates will be followed by a speech and press conference by Fed Chair Jerome Powell.

As Cointelegraph reported, expectations firmly favor the Fed cutting the benchmark rate by 0.25%, per data from CME Group’s FedWatch Tool.

Commenting, trading resource The Kobeissi Letter reiterated concerns about 2025 seeing an upward pivot in Fed policy thanks to resurgent inflation — despite ending the current year with cuts.

“While a 25 basis point rate cut is expected today, odds of rate HIKES returning in 2025 are rising,” it wrote in one of its latest posts on X.

Kobeissi referenced prediction service Kalshi displaying 19% odds of the Fed hiking rates.

“With inflation back on the rise while the labor market is weakening, the Fed must make a difficult decision. Fulfilling both parts of their dual mandate is becoming increasingly difficult,” it added. 

“Will the Fed prioritize inflation or the labor market?”

BTC price cools as “pre-FOMC sellers” dominate

Bitcoin itself saw familiar trading conditions into FOMC, with sell-side pressure reflecting typical risk-off sentiment prior to the event.

Related: Crypto ‘eating TradFi’s lunch’ as $5.75B Coinbase revenue beats Nasdaq

“Market is very much in a dip buying mood,” popular trader Skew told X followers.

“So far throughout today we’re seeing a decrease in long interest as risk is being cut pre – FOMC. The key here though is spot flow which has been dominated by pre-fomc sellers.”

Skew nonetheless suggested that it would not “take much” to flip momentum back in bulls’ favor.

Other market voices noted an unfilled “gap” in CME Group’s Bitcoin futures markets at around $102,000, with fellow trading account MoGambit seeing the potential for BTC/USD to fill it during FOMC.

“While history shows us that not every gap gets closed, this one has the potential to be,” GalaxyTrading continued in part of its own post on the topic.

This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.

Explore new destinations with ease using the Garmin Drive 52 GPS Navigator! With over 17,988 ratings and a solid 4.4/5-star rating, this GPS system has been a top choice for travelers. Over 500+ units were bought in the past month, all for only $144.99.

This 5″ GPS navigator comes with essential driver alerts, real-time travel data, and external memory storage. The simple on-screen menus and bright, easy-to-see maps make it easy to navigate wherever you are. Plus, it’s road trip-ready with The HISTORY Channel database, featuring notable historic sites and much more to enhance your journey.

Don’t miss out—get your hands on the Garmin Drive 52 today for a smoother ride ahead! Buy Now for $144.99 on Amazon!