Several factors combine to create indecision in the bitcoin market

The price of Bitcoin (BTC), the leading digital currency, begins the week below $90,000.

At the time of this publication, the price of each BTC is $89,200 on major exchanges.

The following chart, provided by the CoinGecko portal, shows how bitcoin has behaved over the last 7 days.

A combination of factors is keeping Bitcoin in this state of indecision or price stagnation.

For example, a key factor in last week's initial correction was the behavior of "whales" (entities holding more than 1,000 Bitcoin). According to data from analytics firms, BTC inflows to exchanges like Binance by these players doubled.

Movements of this kind are generally interpreted as an intention to sell or hedge. It suggests that the largest players in the market entered a "defensive mode," reducing their risk appetite after reaching all-time highs.

But while the established players in the ecosystem remained cautious, the world of traditional finance (TradFi) took a step forward.

Two giants changed the game this week: Vanguard and Bank of America. Vanguard, historically conservative and hesitant about digital assets, will finally offer exposure to Bitcoin to its clients, a move that doesn't necessarily reflect an ideological shift but rather a matter of "business survival." They can't afford to be the only ones keeping their options closed.

Amid this scenario, Strategy (formerly known as MicroStrategy) and its CEO, Michael Saylor, continue to be a barometer for the market.

Despite the drop in its stock price and the risk of being delisted from the MSCI index—which sparked fears of forced selling—reports from JP Morgan brought reassurance, indicating that the company's financial health is solid and that there is no immediate pressure to liquidate its Bitcoin holdings.

Bitcoin awaits the Fed's decision

All eyes are on Wednesday, December 10th. The meeting of the Federal Open Market Committee (FOMC) of the US Federal Reserve (Fed) is the event that could define the year-end trend.

According to futures markets and prediction platforms, there is a greater than 90% probability that the Fed will announce another interest rate cut.

Historically, a drop in interest rates and Treasury bond yields—which this week fell below 4%—favors risky assets with finite supplies, such as Bitcoin, by injecting liquidity into the system.

Therefore, if this happens, Bitcoin could rise in the coming days, perhaps consolidating its position above $90,000 with sufficient volume (and setting $100,000 as the next target).

Conversely, if the Fed's decision is not what the market expects (which is highly unlikely), Bitcoin could be on the verge of another price drop.