Bitcoin Maintains $113K Support Amid Thin Liquidity, Traders Adopt Cautious Stance Ahead of Fed Meeting

Bitcoin continues to hold the crucial $113,000 price level as market liquidity shows significant thinning across major exchanges. Cryptocurrency traders are adopting defensive positions and reducing leverage exposure in anticipation of heightened volatility during the upcoming Federal Reserve policy meeting. The current market conditions reflect growing caution among investors, with reduced trading volumes and narrower bid-ask spreads indicating decreased market depth. Analysts note that the thinning liquidity could amplify price movements in either direction once the Fed announces its interest rate decision and economic projections. Market participants are closely monitoring Fed Chair Jerome Powell's commentary for signals about future monetary policy direction that could impact cryptocurrency valuations.