In a tumultuous trading day on Wednesday, Bitcoin briefly fell to lows as $60,804 before rising.
As of this writing, Bitcoin has recovered to trade at little over $64,139, up around 2.31% from the previous day. Bitcoin reached an intraday high of $64,403 earlier on Wednesday.
Even with the recent decline in price, Bitcoin has continued to perform admirably, with an annual growth of 124%. The most popular cryptocurrency in the world hit a record high of around $73,800 last week.
Following many declines, Bitcoin reached almost a two-week low as interest in US exchange-traded funds evaporated. With the highest outflow occurring on Tuesday, the products have created a net inflow of $11.7 billion since their start on January 11.
The decrease in bitcoin also coincides with concern over whether Fed members may lower rate-cut predictions at their meeting on Wednesday due to above-target inflation, suggesting a less favourable future for speculators.
Big Fed policy decision day arrives
Investors are waiting for the Fed’s policy statement today, particularly because no rate move is anticipated at the 2:00 p.m. announcement. Additionally, it is doubtful that Fed Chair Jerome Powell, who will conduct a press conference after the decision, will hint at impending rate decreases.
The topic of today’s meeting is the Fed’s next moves as it starts in-depth talks on quantitative tightening, or shrinking its balance sheet. The financing market suggests that the Fed has a little while to choose the precise timing and method of action.
Though this is not a given, economists generally agree that the Fed will stick to its current course of three cuts, with the first scheduled for June. 2024 has been marked, at least in terms of inflation, by higher-than-expected figures.
Important Fed decisions have traditionally caused a ripple effect in the price of bitcoin, but it’s uncertain if that will happen this time.
