Bitcoin Volatility Amid Fed Decisions and AI Release

Bitcoin's price experienced significant volatility, dropping to $97,906 before rebounding above $100,000 due to broader market influences, including a new AI model release and Federal Reserve interest rate decisions. Analysts note a bearish sentiment with a slight increase in the likelihood of Bitcoin falling to $75,000, fueled by heightened implied volatility and demand for put options. The Federal Reserve has maintained interest rates and removed previous language on inflation progress, impacting Bitcoin's performance, which saw a slight dip post-announcement. Market participants are cautiously monitoring the Fed's decisions, as interest rate changes influence liquidity and sentiment, with current rates expected to remain unchanged. Additionally, Bitcoin's wealth distribution shows a shift towards more stable ownership, with new investors holding a lower proportion compared to past high cycles, reducing the risk of sharp corrections. Technical indicators suggest potential bullish trends, with increased trading volumes and on-chain activity, despite market uncertainties.