Bitcoin Price Hits $90,000: What Will the Fed and Senate Vote Mean for Crypto?

TLDR

• Bitcoin price surged to $90,361, reversing weekend lows near $86,000.
• Traders are focused on the Federal Reserve’s first rate decision of the year.
• Market participants are eyeing Chair Jerome Powell’s comments on labor market resilience.
• The Senate is set to vote on a crypto market structure bill, clarifying digital asset regulation.
• Bitcoin is benefiting from rising momentum amid growing regulatory developments in the U.S.

The Bitcoin price surged early Wednesday, reaching $90,000 as traders responded to key macroeconomic signals and rising momentum surrounding U.S. crypto regulation. This price movement followed a reversal from the weekend’s lows near $86,000, with Bitcoin climbing to a high of $90,361. The price action is occurring as the market braces for the Federal Reserve’s first rate decision of the year and a key Senate vote on cryptocurrency regulation.

Bitcoin Price Soars as Federal Reserve Decision Approaches

With unemployment standing at 4.4%, the market is focusing less on inflation and more on potential shifts in the labor market. Investors are waiting for Federal Reserve Chair Jerome Powell’s stance on whether the labor market remains resilient or whether he will hint at rate cuts. A neutral tone from Powell may cause market uncertainty and lead to bearish sentiment for Bitcoin and other assets in the sector.

Crypto Regulation on the Horizon

Bitcoin’s recent price surge coincides with increased attention on U.S. crypto regulation. On Thursday, the Senate Agriculture Committee is scheduled to vote on a crypto market structure bill. This bill would help clarify the regulatory framework for digital asset markets in the United States, an important step for the future of crypto markets.

The bill’s passage could provide much-needed regulatory clarity for market participants. There are ongoing amendments to the bill, and it remains uncertain whether it will gain enough support in the Senate. However, the absence of deal-breaking amendments has raised optimism that the bill could move forward and gain broader legislative backing.

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