Bitcoin shrugs off AI selloff but high-stakes Fed meeting could determine what's next
Bitcoin and Ether are showing resilience despite volatility in the broader tech market, though analysts remain divided on whether this indicates a true breakout or a temporary range-bound trend. Upcoming Federal Reserve policy decisions and U.S. inflation data are expected to be the primary catalysts for the next market move.
Why it matters
The potential decoupling of digital assets from traditional risk assets is a critical indicator for institutional investors and the broader financial market.
BTC held around $65,000, up 4% since Friday, while ether (ETH) hit its strongest price in nearly two months. Meanwhile, Nvidia’s 4.8% decline led AI-favorites lower, even as the overall Nasdaq was about flat thanks to gains in hyperscalers Apple, Microsoft, and Google.
That resilience, however, is about to face its biggest test.
With the Federal Reserve's policy decision, key U.S. inflation data and earnings from several technology giants all due this week, analysts say the next few days could determine whether bitcoin finally breaks out of its months-long trading range or rolls over to revisit the June lows.
“The recent resilience of crypto during periods of volatility in traditional markets is an encouraging development,” said Joel Kruger, market strategist at LMAX Group. "It supports the argument that digital assets are beginning to decouple, at least at the margin, from conventional risk assets."
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