Bitcoin holds near $90,000 as markets brace for Fed decision

Bitcoin hovered near USD 90,000 on Tuesday, after rebounding from its low last month.

With the Federal Reserve set to deliver its final policy decision of the year on Wednesday, the market is largely in wait-and-see mode.

Markets assign nearly a 90% probability to a rate cut tomorrow, while expectations for 2026 continue to point to two additional reductions. The tone from Chair Jerome Powell and the updated FOMC Economic Projections could be decisive for risk sentiment.

Any signal that the Fed is prepared to lean more dovish could lift Bitcoin and broader risky assets; otherwise, the cryptocurrency could come under pressure amid an already bearish direction during the second half of this year.

At the same time, ETF activity remains fragile. After a USD 50 million inflow on Friday, funds recorded USD 60 million in outflows on Monday. Persistent weakness in institutional flows may cap the upside until confidence in the asset class returns.