Bitcoin remains stable above the $109,000 mark in Wednesday’s trading, as investors adopt a cautious stance ahead of the release of the U.S. Federal Reserve’s FOMC meeting minutes, seeking any clues regarding the potential path of interest rate cuts.
In the absence of market-moving news, traders are closely watching for signals in the minutes that could offer direction for monetary policy, potentially triggering sharp moves in the price of the world’s largest digital asset by market cap.
Despite this cautious tone, developments related to exchange-traded funds have generated short-term optimism, particularly after Trump Media filed for the creation of five crypto-linked ETFs. Meanwhile, spot Bitcoin funds recorded $80 million in net inflows on Tuesday.
FOMC minutes may trigger volatility in Bitcoin price
Bitcoin continued to trade sideways around the $109,000 level during Wednesday’s European session, with no major catalysts. However, this period of stability may end during the U.S. session with the release of the Federal Open Market Committee’s meeting minutes later today, which could provide more clarity on the interest rate outlook and spark a fresh directional move in Bitcoin.
According to a report by K33 Research on Tuesday, Bitcoin has remained within a narrow range with low daily volatility since May 22, leading to a noticeable decline in implied volatility across derivatives market options.
Although Bitcoin has made several upward attempts, chart data shows that implied volatility remains at its lowest level of the year, following another week of muted activity. Option skews remain neutral, reflecting a prevailing “wait-and-see” approach among traders.
Trump Media files to launch ‘Crypto Blue Chip ETF’
On Tuesday, Trump Media submitted an official S-1 registration filing to the U.S. Securities and Exchange Commission (SEC) for a new ETF named the “Crypto Blue Chip ETF,” featuring five leading cryptocurrencies: Bitcoin (BTC), Ethereum (ETH), Solana (SOL), Cronos (CRO), and Ripple (XRP).
According to the filing details, the fund aims to allocate 70% of its assets to Bitcoin, 15% to Ethereum, 8% to Solana, 5% to Cronos, and 2% to Ripple.
Approval of the fund would be seen as a strong bullish signal for the crypto market, particularly Bitcoin, by enhancing adoption and improving liquidity.
Beyond institutional filings, demand from large investors for Bitcoin remains strong. Data from SoSoValue shows that spot Bitcoin funds recorded net inflows of $80.08 million on Tuesday, marking the fourth consecutive day of positive inflows since July 2.
Bitcoin outlook: price holding near key support
Bitcoin price has continued to move within a narrow range near the upper boundary of the consolidation zone previously broken at $108,355 since Friday. On Monday, the price dipped slightly to retest this level, then recovered modestly on Tuesday. As of Wednesday’s writing, the price is hovering around $108,700.
If this level continues to hold as technical support, Bitcoin may resume its upward path toward the previous all-time high recorded on May 22 at $111,980.
The Relative Strength Index (RSI) on the daily chart reads 55, indicating bullish momentum as it remains above the neutral 50 mark. Meanwhile, the MACD lines appear intertwined, reflecting indecision among traders regarding the next directional move.
In the event of a downside correction and a close below the $108,355 support, Bitcoin could retreat to test the lower boundary of the previous consolidation zone at $105,333 — a level that roughly coincides with the 50-day Exponential Moving Average (EMA) at $105,414, making it a critical support area.
