Bitcoin and Ethereum are at the center of market attention as crypto markets brace for a surge in volatility ahead of the U.S. Federal Reserve’s interest rate decision at 2:00 p.m. ET, followed by Fed Chair Jerome Powell’s remarks 30 minutes later. While no rate change is expected, Powell’s comments could become the key trigger for sharp price moves across digital assets.
Markets on pause ahead of the Fed
Traders are largely aligned on one outcome: interest rates are expected to remain unchanged. With a 97%+ probability of no hike already priced in, the focus has shifted to what Powell says about inflation, economic strength, and the path of policy later this year.
Crypto markets are clearly in wait-and-watch mode. Previous episodes of macro uncertainty — including government shutdown concerns — have triggered spikes in volatility, often hitting Bitcoin first. At the same time, expectations for near-term rate cuts have cooled, adding to market tension. Even subtle changes in Powell’s tone have moved markets in the past, making his guidance especially important this time.
A hawkish message emphasizing stubborn inflation or economic resilience could weigh on risk assets. On the flip side, any hint that rate cuts could return to the conversation later in the year may spark a relief rally in crypto.
Bitcoin price prediction: Stuck in a tight range
Bitcoin is trading around $90,182, hovering just below the key $92,000 resistance level. Price action has been narrow, reflecting hesitation rather than strong bullish momentum.
Technically, Bitcoin remains vulnerable. A clear rejection at resistance, combined with a more cautious Fed tone, could open the door for a pullback toward the $85,000 area. For now, the short-term Bitcoin price prediction remains neutral to slightly bearish, with traders expecting volatility to pick up once the FOMC dust settles.
Ethereum price prediction: Holding stronger support
Ethereum is showing more resilience compared to Bitcoin. ETH continues to trade above the important $3,000 level, with buyers stepping in to defend this zone during the broader market pause.
If the Fed’s messaging leans market-friendly, Ethereum could break above $3,300 and set its sights on $3,500. However, a drop below $3,000 would weaken the structure and may send ETH down toward $2,700. Overall, the near-term Ethereum price prediction looks cautiously optimistic, but still highly dependent on macro signals.
What happens after the FOMC?
Once the rate decision and Powell’s remarks are out, uncertainty should begin to clear — but not without potential turbulence first. With rates expected to stay put, sentiment will hinge on how confident or cautious the Fed appears.
In the end, Bitcoin and Ethereum price predictions are being driven less by crypto-specific news and more by the broader macro backdrop. Traders should be ready for fast and decisive moves as the market digests the Fed’s message.
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