Bitcoin Stuck in Fed’s Rate-Cut Uncertainty While Wall Street Seizes Buying Opportunity

Bitcoin Price: Wall Street Seizes Buying Opportunity, But Fed Ambiguity Leaves Market Directionless

Bitcoin’s value is caught in a holding pattern as opposing factors influence investor outlook. Even with $241 million flowing into U.S. spot

ETFs over the past day—primarily driven by BlackRock’s iShares Bitcoin Trust—traders remain hesitant due to ongoing uncertainty about the Federal Reserve’s plans for interest rate reductions. As of September 26, Bitcoin fluctuated between $111,800 and $112,100, unable to break out of a narrow trading band shaped by both technical barriers and economic uncertainty. Experts are calling this a “market of maybes,” as buyers and sellers struggle for dominance within the $112,000–$113,500 range.

Wall Street’s interest in Bitcoin remains strong, as evidenced by robust ETF inflows and active derivatives trading. Still, this enthusiasm is restrained by the Federal Reserve’s cautious approach. In a recent address, Fed Chair Jerome Powell stressed that officials are “not hurrying to ease policy,” describing the central bank’s moves as a “risk-management” effort to weigh inflation against employment concerns. Powell’s comments, along with a lack of agreement among Fed members, have kept a lid on Bitcoin’s price. Investors are now waiting to see if the Fed will focus on curbing inflation or react to signs of a weakening job market.

Broader economic challenges are adding to Bitcoin’s woes. Concerns about a possible U.S. government shutdown by October 1 have heightened risk aversion, sparking a $162 billion decline in the total crypto market since September 23. Bitcoin slipped below $112,000 during a $23 billion options expiration, while

dropped under $4,000 for the first time in nearly two months. The market is also dealing with $1.65 billion in forced liquidations of leveraged positions, which is intensifying the downward trend.

Technical analysis highlights the current uncertainty. The MACD and RSI, two popular momentum indicators, are sending mixed messages. While the MACD points to a possible bullish reversal, the RSI signals fading strength, with Bitcoin hovering near crucial support. Analysts caution that failing to reclaim $113,500 could open the door for a decline toward $105,000–$90,000, while a decisive move above that level could spark a rally toward $115,000.

Long-term prospects are still supported by institutional interest and regulatory progress. Spot Bitcoin ETFs continue to draw investments, and the asset’s reputation as a store of value endures despite short-term swings. However, the Fed’s slow approach to rate cuts and global uncertainties—such as the potential inflationary effects of tariffs—are immediate obstacles. As one analyst put it, “Bitcoin is caught between macroeconomic realities and technical thresholds, with the Fed’s upcoming decisions likely to determine its direction.”

The next major trigger for the market is expected to come from October’s economic reports, including GDP and PCE price index data. Until then, Bitcoin remains range-bound, with bulls looking for a breakout and bears watching for a retest of key supports. Investors should keep an eye on signals from the Fed and institutional activity, as these will be crucial in determining whether Bitcoin can escape its current stagnation.