[Coin Market News] Bitcoin Edges Up Before U.S. Interest Rate Decision... Dominance Peaks at 65%, 4-Year High

# Bitcoin Rises Ahead of Anticipated Federal Reserve Rate Announcement Bitcoin (BTC) recorded slight increases as markets awaited the U.S. Federal Reserve's upcoming interest rate decision, hinting at expectations of a rate pause. Analysts emphasize that Federal Reserve Chair Jerome Powell’s comments and the quarterly economic outlook release could significantly influence market trends. As reported at 8:07 a.m. KST, Bitcoin traded at 136.68 million KRW on South Korea’s Upbit exchange, reflecting a 1.34% rise from the previous day. Meanwhile, on Binance, the foremost global exchange, Bitcoin showed a 1.23% increase, trading at $9,618.4. Conversely, most altcoins faced a downturn, with Ethereum (ETH) down 1.49% and Solana (SOL) decreasing by 1.55%. # Market Hesitation Evident in Liquidation Activity Data from Coinglass indicates that around $42.83 million in Bitcoin positions were liquidated over the past 24 hours, with 58% of these being short positions. Over the same period, total liquidations across the broader cryptocurrency market reached $237.34 million, reflecting cautious market behavior ahead of the Federal Open Market Committee (FOMC) findings. # Interest Rate Hold Expected Amid Economic Projections The FOMC’s two-day meeting began against the backdrop of stalled U.S. trade tariff negotiations, with a majority expecting the announcement of an interest rate hold on November 8 (KST). Catalin Tischerhauser, Head of Research at digital asset bank Signum, remarked, “Last week’s GDP figures were skewed by companies accelerating imports due to tariff concerns. Such temporary data spikes are unlikely to influence the Fed’s policy significantly.” # Bitcoin Dominance Peaks at Multi-Year High With market participants holding off decisions pending the FOMC outcome, Bitcoin’s dominance in the cryptocurrency market has surged beyond 65%, hitting its highest level since January 2021. Analysts attribute this rise to the reallocation of capital from highly volatile altcoins to the more stable Bitcoin, rather than new money entering the space. Joel Kruger, Market Strategist at LMAX Group, observed, “The cryptocurrency market has remained static as investors seek clarity on both monetary policy and U.S. trade issues.” Vetle Lunde from K33 Research stated, “Bitcoin’s recent price movements have been notably quiet.” Indeed, Bitcoin’s seven-day average volatility recently dipped to its lowest in over 18 months. # Potential Volatility Despite a Bearish Futures Market Despite the current calm, Lunde warned, “Periods of low activity often precede major volatility spikes. Notably, the perpetual futures funding rate for Bitcoin remains negative, indicating substantial short positions from investors anticipating a decline.” He added, “Historically, such conditions have frequently led to a rebound in Bitcoin prices. Current levels might offer a medium- to long-term buying opportunity, suggesting limited downside risks.” # Investor Sentiment Exhibits Mild Optimism Additionally, the Alternative Fear & Greed Index, which measures sentiment in the digital asset market, inched up to 59 (Greed) from 52 the previous day. The index ranges from 0, indicating intense selling pressure, to 100, reflecting strong buying activity. Investors and analysts remain cautiously optimistic, with Bitcoin’s resilience and market stance indicating potential for further gains influenced by macroeconomic developments and clearer Fed policies.