Bitcoin (BTC) and the larger cryptocurrency market are eagerly anticipating the Federal Open Market Committee (FOMC) meeting on Wednesday, led by Jerome Powell. The US Federal Reserve (Fed) is expected to announce its latest interest rate decision, with current predictions indicating a strong likelihood of rates remaining at 4.25% - 4.5%. Market participants will closely watch for Powell’s statements during the subsequent press conference for guidance.

Although there is a high probability of interest rates staying unchanged, market volatility is still expected. Traders are exercising caution, with Bitcoin's price stabilizing around $94,000. Despite signs of ETF inflows slowing and liquidations rising, analysts predict potential bearish pressure in the market due to negative funding rates and high open interest.

The current FOMC meeting is of significant importance for various risk assets. Historical data suggests that Bitcoin has seen positive outcomes following previous FOMC decisions. However, uncertainties loom amid concerns over economic factors like softer GDP figures, trade tensions, and inflation worries. Powell's statements during the meeting could potentially trigger a breakout or breakdown for Bitcoin.

Analysts are closely observing Powell's tone, as a repeat of his hawkish stance in December 2023 could have negative implications on the market. Despite the prevailing caution, there is still room for a potential market breakout if Powell hints at a more accommodative approach. The market remains uncertain, with dynamics influenced by ongoing US-China trade tensions and their wider implications.

Overall, market sentiment is mixed, with possibilities of both positive and negative outcomes depending on Powell’s messaging. This uncertainty has created a tense environment in the market leading up to the FOMC meeting, with investors eagerly awaiting Powell's remarks to determine the market's direction. Bitcoin is currently valued at around $94,474, showing a slight decrease in the last 24 hours.