Bitcoin slips below $118,300 as market awaits Fed decision; Ethereum outperforms with ETF boost

The cryptocurrency market traded mostly lower on Wednesday, with Bitcoin slipping below the $118,300 mark as investors remained cautious ahead of the US Federal Reserve's policy decision and a key regulatory report from the White House.

As of 12:19 pm IST, Bitcoin was down 0.55% at $118,268, while Ethereum rose 0.25% to $3,827, according to CoinMarketCap. The global crypto market capitalisation declined 0.75% to $3.88 trillion.

Market eyes Fed, regulatory clarity

“Bitcoin continues to trade in a tight range between $117,000 and $119,000, along with altcoins following a similar trend,” said Edul Patel, Co-founder and CEO of Mudrex. “Apart from the FOMC meeting outcome, the market now focuses on the ‘Crypto Report’ by the White House, recommending a regulatory framework for digital assets.”

According to Patel, dovish commentary from the US Federal Reserve, coupled with supportive policy signals, could help Bitcoin break the key $120,000 resistance level. A hawkish tone, however, might trigger further consolidation near $115,000.

Vikram Subburaj, CEO of Giottus, added that Bitcoin’s narrow price action is reflective of investor caution. “The market awaits the US FOMC rate decision and the White House’s long-awaited crypto policy update later today. While the Fed is expected to hold rates steady, any dovish tilt hinting at September cuts could propel risk assets higher,” he said.

Subburaj noted that the policy update may introduce a formal Bitcoin Reserve Framework and support delta-neutral ETF strategies. “If either lands favourably, BTC could reclaim $122,000 and unlock the path to price discovery,” he added.

Healthy consolidation or caution?

Avinash Shekhar, Co-founder and CEO of Pi42, said the recent stability in Bitcoin prices signals resilience rather than weakness. “Bitcoin’s resilience around the $119,000 level—after a sharp dip driven by a massive 80,000 BTC sell-off—signals a period of healthy consolidation. Broader market structure remains intact as investors await clarity from the Fed.”

Shekhar also pointed out notable pullbacks in select altcoins like SUI, PEPE, and ENA, indicating ongoing profit-taking after recent gains. “With Bitcoin dominance still holding above 59%, this phase could offer selective entry opportunities across both large and mid-cap altcoins,” he said.

Ethereum shows relative strength

Ethereum appeared to be gaining momentum, supported by institutional inflows and bullish technical signals. “Bitcoin continues to consolidate between $114K and $120K, forming a classic bull flag pattern on the 4-hour chart—a historically bullish signal if confirmed by a breakout,” said Riya Sehgal, Research Analyst at Delta Exchange.

“Meanwhile, Ethereum is showing stronger bullish momentum. Whale accumulation, shrinking exchange reserves, and nearly $5 billion in ETF inflows over just 17 days point to mounting institutional demand,” Sehgal noted. A breakout above $4,100 could spark the next leg higher for ETH, she said.

Sehgal added that while Bitcoin’s options expiry suggests a neutral to slightly bearish stance—with a Put/Call Ratio of 0.46 and tight call/put interest between $117K–$119K—Ethereum’s divergence may signal a shift in short-term market leadership.

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of the Economic Times)