Bitcoin Holds Firm Ahead of Fed Decision as Markets Brace for High-Impact Week

Bitcoin (BTC) and the broader cryptocurrency market remained resilient on Monday despite weakness in AI-related technology stocks, setting the stage for what could be a pivotal week for digital assets.

BTC traded near $65,000, up around 4% since Friday, while Ethereum (ETH) climbed to its highest level in nearly two months. The gains came even as Nvidia fell 4.8%, dragging other AI-focused stocks lower. However, strength in major technology companies such as Apple, Microsoft, and Alphabet helped keep the Nasdaq relatively stable.

Market analysts believe the coming days could determine whether Bitcoin finally breaks out of its multi-month trading range or retreats toward recent lows. Investors are closely watching the U.S. Federal Reserve’s interest rate decision, the release of core PCE inflation data, second-quarter GDP figures, and quarterly earnings from major tech firms including Microsoft, Meta, Apple, and Amazon.

Joel Kruger, market strategist at LMAX Group, said crypto’s recent resilience during periods of volatility in traditional markets is an encouraging sign that digital assets may be gradually decoupling from conventional risk assets. He noted that Bitcoin must break above $67,300 to confirm a bullish breakout, while Ethereum faces key resistance around $2,000.

Fundstrat co-founder and Bitmine chairman Tom Lee also highlighted Ethereum’s recent outperformance versus Bitcoin as a positive indicator. The ETH/BTC ratio recently reached a three-month high, signaling renewed strength in the broader crypto market.

However, not all analysts are convinced the rally has enough momentum. Nansen senior research analyst Nicolai Sondergaard said Bitcoin’s recent gains lack strong buying pressure and appear driven more by positioning than fresh investor demand. His outlook still favors a pullback toward the $52,000-$58,000 range unless market conditions improve.

Although nearly 9,000 BTC left exchanges over the past week, declining Bitcoin futures open interest suggests traders are reducing exposure rather than building new bullish positions. Sondergaard added that stronger stablecoin inflows, continued spot Bitcoin ETF purchases, and reduced selling by long-term holders would be needed to support a sustained uptrend. Until then, the upcoming Fed decision, macroeconomic data, and roughly $13-14 billion in Bitcoin and Ethereum options expiring Friday are expected to be the key catalysts for the crypto market.