Crypto markets remain stuck in limbo as Federal Reserve caution collides with investor optimism.
Bitcoin briefly clawed its way back after Monday’s drop, only to lose momentum again while Wall Street money quietly flowed into ETFs.
The Fed’s Careful Stance
Jerome Powell has made it clear that last week’s quarter-point cut was more about managing risks than starting an aggressive easing cycle. Inflation still looms large, he said, and the central bank is not rushing toward a series of deep cuts. The message was simple: policy will move only if the data forces it.
Investors, however, are already leaning in. Spot Bitcoin funds brought in $241 million midweek, with BlackRock’s iShares product leading the way. Historically, the final quarter of the year has been good to Bitcoin, and traders are betting that pattern could repeat even with macro clouds overhead.
A Market of “Maybes”
Analysts say the mixed signals have left crypto trading on thin ice. Timothy Misir of BRN Research described the landscape as a “market of maybes” — maybe support holds, maybe inflows continue, maybe the Fed steps in again before year-end.
For Bitcoin, that means wrestling with familiar levels: a double bottom near $111,000, resistance around $113,500, and the possibility of a push toward $115,000 if bulls break through. But if momentum fades, charts still warn of room to fall as low as $105,000 or even $90,000.
Ethereum tells a similar story. The token has clung to $4,000 but looks fragile, with downside targets at $3,800 and $3,600 if buyers retreat.
Waiting for a Breakout
In short, Bitcoin is pinned between a patient Fed and a bullish Wall Street. Until one side wins out, crypto looks set to drift sideways — heavy with optimism but light on conviction.
