Washington, D.C., June 12 — Cryptocurrency markets remain in a holding pattern ahead of the U.S. Federal Reserve’s highly anticipated interest rate decision, with Bitcoin trading narrowly around $69,000 amid muted volatility. According to the CME FedWatch Tool, traders are pricing in a near-100% probability that the Federal Open Market Committee (FOMC) will keep rates steady, marking a pause after three consecutive cuts earlier this year.

"The current stagnation in Bitcoin’s price reflects risk aversion ahead of the Fed meeting," said Alex Kuptsikevich, chief market analyst at FxPro. "Investors are wary of potential surprises in the central bank’s messaging, particularly given the political backdrop."

The Fed’s policy announcement, scheduled for Wednesday at 2 p.m. ET, will be followed by a press conference with Chair Jerome Powell. Analysts expect Powell to face intense scrutiny over how the central bank will respond to former President Donald Trump’s recent demands for aggressive rate cuts.

Trump’s Unprecedented Pressure
Trump last week escalated his criticism of the Fed, stating, "I think I know interest rates much better than they do," and implying he would exert influence over monetary policy if reelected. His remarks have reignited concerns about the Fed’s independence, a cornerstone of its credibility.

"Any sign that the Fed is bowing to political pressure could destabilize markets," warned Isabella Weber, an economist at the University of Massachusetts Amherst. "If rates are cut now, it risks being perceived as a capitulation to Trump, undermining confidence in the institution."

Market Implications
Bitcoin, often touted as a hedge against monetary policy uncertainty, has surged over the past year amid the Fed’s rate-cutting cycle. However, its recent sideways movement suggests traders are adopting a cautious stance.

Barclays economist Ajay Rajadhyaksha noted in a client memo: "Chair Powell will likely reaffirm the Fed’s data-driven approach while avoiding direct engagement with political rhetoric. Clarity on inflation and labor market trends will be critical."

The outcome could set the tone for crypto markets in the coming weeks, with traders also eyeing developments in regulatory frameworks and institutional adoption.