Bitcoin price drops back to $63.000 before Fed decision

Bitcoin briefly touched $65.000 on Monday, but could not hold those gains. The price falls back to around $63.000 as investors grow cautious ahead of the Federal Reserve’s interest rate decision. At the same time, the PUMP token on the Solana network is attracting a lot of attention from traders and influencers.

Bitcoin is available at OKX and Bybit.

Bitcoin drops 2.7% as the Fed looms

After a brief peak near $65.000, Bitcoin loses its momentum and is trading at around $63.400 at the time of writing, a drop of 2.7% in the past 24 hours. The caution among traders has everything to do with what is on the agenda on Wednesday: the Federal Reserve will then announce its interest rate decision.

Market expectations are that the Fed will leave interest rates unchanged, but there is still roughly a one-in-three chance that the central bank will implement a rate hike nonetheless. That uncertainty keeps investors on the sidelines for now. Also on the agenda today is the CB Consumer Confidence figure, which will be released at 14:00 local time and provides additional insight into the health of the US economy.

PUMP token takes the lead on Solana, geopolitics in the background

While Bitcoin is under pressure, there is striking news from the Solana ecosystem. The PUMP token from Pump.fun is the biggest riser and is attracting a lot of attention. Traders and influencers are stepping up conversations around this token, driving the price up. It shows that despite the macro uncertainty, there is activity in specific corners of the crypto market.

On the geopolitical front, there is also plenty to report. The US and Iran have paused direct military attacks for two consecutive days. According to Donald Trump, the talks are going ‘very amicably’, although he indicated he has no desire for endless dragging of negotiations. Israeli Prime Minister Benjamin Netanyahu is visiting Washington for a meeting with Trump, with Iran high on the agenda. How these geopolitical tensions will affect the markets remains to be seen for now.