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Bitcoin Consolidates Ahead of Fed Policy Decision

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Bitcoin traded in a narrow range between $73,000 and $74,600 on Wednesday as market participants awaited the Federal Reserve's policy announcement. The consolidation reflects investor caution ahead of updated economic projections that will incorporate the inflationary impact of rising energy prices following Middle East tensions. While the federal funds rate is expected to remain unchanged at 3.50%-3.75%, the Fed's revised outlook on inflation, growth, and unemployment will provide critical signals for risk assets.

The cryptocurrency market's near-term trajectory appears heavily dependent on the Fed's guidance. A hawkish stance emphasizing persistent inflation could pressure Bitcoin's momentum, while dovish signals supporting future rate cuts might catalyze a breakout toward the $80,000 psychological barrier. Market positioning suggests traders are preparing for increased volatility following the announcement.

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