Bitcoin price surpasses $97,000 during surge on Tuesday evening

Bitcoin has been making significant gains, reaching $97,388 as of Tuesday evening. This surge comes as investors eagerly await the Federal Reserve FOMC interest rate decision, which is expected to bring increased volatility to the cryptocurrency markets. The price surge reflects growing confidence among investors, despite uncertainties in traditional financial markets due to monetary policy signals.

The upcoming Federal Open Market Committee (FOMC) decision on interest rates is crucial for Bitcoin traders. While interest rates are expected to remain stable, market participants are hoping for signals of future rate cuts. As reported by Cointelegraph, traders are taking long positions in anticipation of positive macro signals, with futures open interest and funding rates showing strong belief in further Bitcoin gains after the meeting.

Bitcoin’s dominance in the cryptocurrency market has reached levels not seen since 2021, indicating a shift to quality assets like Bitcoin over more speculative altcoins. As anxiety mounts over interest rates and economic growth, investors are moving their capital back to Bitcoin, perceived as a “digital gold” by institutional investors. This surge in Bitcoin’s dominance reflects a repositioning of funds to safer investments during uncertain times.

Institutional demand for Bitcoin is on the rise, as U.S.-based Bitcoin ETFs have seen over $420 million in inflows in the past 24 hours. BlackRock’s iShares Bitcoin Trust (IBIT) leads the way with inflows surpassing $529.5 million in a single day. This institutional interest indicates that traditional financial institutions are accumulating Bitcoin during market downturns, putting upward pressure on prices ahead of key economic events.

With the looming FOMC decision, Bitcoin’s next target could be $100,000 if the Fed signals a more dovish stance or hints at future easing measures. Investors are closely watching key price levels, with support at $94,000 and $92,500, and resistance at $98,500 and the psychological barrier of $100,000. Bitcoin’s dominance currently stands at 55.3%, the highest since April 2021, indicating a preference for Bitcoin over other cryptocurrencies.

Overall, Bitcoin’s rally to $97,000 reflects growing confidence among investors as they prepare for a potentially significant Federal Reserve decision. With institutional inflows, increased dominance, and rising leverage in futures markets, all eyes are on the FOMC statement. If market conditions align, Bitcoin could surpass $100,000 and continue its upward trajectory.