Bitcoin's Future Hangs on Fed's Dovish or Hawkish Signals

Traders expect the Federal Reserve to keep interest rates stable, but the key influence will come from Powell's speech and the dot plot, as traders look for hints about a potential policy shift. Bitcoin remains confined in a narrow trading band, with increasing short positions and accumulation by on-chain whales; a significant move might occur if dovish signals emerge from the Fed. Currently, market positioning is cautious, with negative funding rates and fluctuating ETF flows, as most traders stay neutral or hedged while waiting for the FOMC decision to trigger a move. An unexpectedly hawkish stance from the Fed could sharply lower Bitcoin towards $100,000 or less, while a dovish tone allowing for rate cuts could trigger short covering, pushing Bitcoin above $112,000 and into new all-time highs. Market participants should stay alert and ready for rapid moves.