Bitcoin Settles Near $87K Amid FOMC Uncertainty—Support at $86K in Focus

Bitcoin is navigating choppy waters as it retreats toward $87,000, with the broader cryptocurrency market bracing for the Federal Open Market Committee’s imminent rate decision. The flagship digital asset slid roughly $2,000 in recent trading sessions, reflecting heightened uncertainty surrounding macroeconomic policy signals.

The Macro Backdrop: Fed Rate Cut Expectations

Market consensus, tracked via CME Group’s FedWatch Tool, points toward a 0.25% interest-rate reduction from the Federal Reserve in the coming days. This policy shift carries significant weight for risk assets, including Bitcoin, as lower rates typically enhance liquidity conditions and investor appetite for higher-yielding or speculative investments.

The timing is critical—analysts note that the weekend’s price action could set the tone for positioning strategies come Monday, suggesting that sideways trading over the next two days might compress volatility ahead of the announcement’s wake-up call.

Technical Levels Worth Monitoring

The $86,000 support level has emerged as a crucial pivot point. Market watchers, including prominent trader Michaël van de Poppe, contend that if Bitcoin holds this floor, a swift recovery toward $92,000 becomes plausible. Breaking through that resistance could open the door to $100,000, particularly if the Fed signals a more accommodative stance on quantitative tightening.

The Bigger Picture

Bitcoin’s current price of $87.64K reflects the delicate balance between dovish rate expectations and traditional equity market dynamics. Cryptocurrency traders are essentially playing a dual game: betting on Fed policy easing while managing exposure to weekend volatility that could trigger cascading liquidations or capitulation moves.

The coming 72 hours will be pivotal. A clear FOMC signal toward easing could reignite momentum, while a hawkish surprise might test lower support zones. For now, the bulls are watching that $86K level like hawks—a hold would validate the bullish narrative, while a break below could trigger deeper selling pressure across crypto markets.