Bitcoin has fallen below $77,700 as traders brace for Wednesday's Federal Reserve rate decision. Nearly 79,000 traders were liquidated in the past 24 hours, even as U.S. spot Bitcoin ETFs posted net inflows.
Bitcoin's price has dropped below $77,700 as traders position ahead of the Federal Reserve's FOMC meeting tomorrow. The market is already under heavy pressure, with nearly 79,000 traders liquidated and total liquidations reaching $337.75 million in the past 24 hours.
Why Bitcoin's Price Is Down Today
Bitcoin is down 1.28% as traders turn cautious ahead of two major U.S. events. The main pressure comes from today's Senate procedural vote on the Digital Asset Market Clarity Act, which has faced opposition from banking groups over its stablecoin "circuit breaker." As a result, prediction market odds for the bill's passage have fallen from 44% to 18% ahead of the September 15 vote.
At the same time, markets are pricing in a 93% chance of a Fed rate hike, leading traders to reduce their exposure to Bitcoin. Adding to the pressure, Brent crude has moved above $106 a barrel as Middle East tensions rise. Higher oil prices can push inflation higher and keep Treasury yields elevated, which can pull money away from assets like Bitcoin that do not generate regular income.
Fed Expected To Hike Rate Wednesday
The Federal Open Market Committee will announce its interest rate decision on Wednesday, September 16, at 2:00 p.m. ET. August inflation has kept pressure on markets, with CPI at 3.4% year over year. PPI stood at 5.4%. Markets are now pricing a 93% chance of a 25-basis-point rate move, according to the CME FedWatch Tool. Traders will also watch Fed Chair Kevin Warsh's comments for clues about the central bank's next steps.
Bitcoin ETF Flows Turn Positive
Despite the price drop, U.S. spot Bitcoin ETFs recorded $159.9 million in net inflows on September 14, giving the market some support. BlackRock's IBIT led with $134.3 million, followed by Fidelity's FBTC with $53.3 million and Morgan Stanley's MSBT with $9.7 million. However, ARKB saw $42 million in outflows, reducing the overall inflow.
The latest inflows follow a weak week for Bitcoin ETFs, which recorded around $461 million in net outflows. Bitcoin is now testing the $76,000-$76,500 support zone; holding this area could help it stabilize. A break below it could push the price toward the next major support near $73,000.
Source: Coinpedia Fintech News
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