Bitcoin markets await Fed, BOE and BOJ decisions

Bitcoin has recovered to approximately $78,100 as traders prepare for three central bank decisions and Tuesday’s U.S. Senate vote on crypto market legislation. Summary Bitcoin traded near $78,100 as three major central banks prepared interest-rate decisions this week globally. Markets priced an 87% chance of a quarter-point Federal Reserve increase before Wednesday’s policy announcement. The Bank of England enters Thursday’s meeting with its benchmark rate currently unchanged at 3.75%. Bank of Japan officials meet Thursday and Friday as markets anticipate another quarter-point increase decision. XRP gained 4.5% while Filecoin jumped 23% during Monday’s cryptocurrency market rebound before central-bank decisions. Federal Reserve’s official calendar shows policymakers will meet on Sept. 15 and 16, with their rate statement scheduled for Wednesday afternoon. Updated economic projections and Chair Kevin Warsh’s press conference will follow the announcement. You might also like: Bitcoin sentiment tops 89 for first time since March 2024 Bitcoin steadies near $78,100 before Fed decision Bitcoin traded at $78,122 on Sept. 14, up 1.7% over 24 hours after falling as low as $76,439. The cryptocurrency reached an intraday high of $78,276 but remained below the $80,000 level that rejected several recent advances. Bitcoin (BTC) price chart, source: crypto.news Ethereum gained 1.6% to $2,523.75 during the same period. XRP rose 4.5% to $1.40, while Filecoin recorded the strongest move among the tracked assets, climbing 23% to just over $1. The Federal Open Market Committee enters its meeting with the federal funds target range at 3.50% to 3.75%. A quarter-point increase would lift the range to 3.75% to 4.00%, although the committee has not confirmed its decision. Market expectations changed sharply after the latest U.S. inflation readings. Reuters reported on Monday that interest-rate markets assigned an 87% probability to a September increase. Goldman Sachs and JPMorgan revised their forecasts to predict a 25-basis-point increase. JPMorgan expects another increase in December, while Goldman projects two reductions during 2027. Each forecast represents the bank’s view and does not indicate an agreed Federal Reserve policy. Only days earlier, a Reuters poll showed nearly 70% of surveyed economists expecting officials to leave rates unchanged. August inflation data and higher energy costs drove several banks to change their calls before the meeting. As previously reported, Bitcoin had recovered above $78,000 as September rate-hike odds reached 81% following the U.S. consumer price report. The probability has continued to move as traders adjust positions. Fed decision will include new rate projections Wednesday’s meeting will produce the Federal Reserve’s updated Summary of Economic Projections. The document contains officials’ forecasts for economic growth, unemployment, inflation and the federal funds rate. Its rate projections are commonly called the dot plot because each participating official places a point beside their preferred rate level.