Bitcoin (BTC) 
$104,718 experienced a decline today, losing value following indecisive price movements. The leading cryptocurrency dropped to $103,750, reflecting a 2% decrease. Currently, markets are focused on the Federal Reserve’s interest rate decision that will be announced today, as investors attempt to mitigate their risks ahead of the announcement.
Altcoins Show Greater Losses Compared to Bitcoin
The decline in Bitcoin has resulted in even larger losses in the altcoin market. Significant altcoins such as XRP, SOL, and ETH mirrored Bitcoin’s movements. However, some altcoins have experienced sharper declines in comparison to Bitcoin.
Due to the prevailing uncertainty in the market, investors seem to be reducing their positions. As a result, it is crucial for them to be prepared for high volatility.
Limited Interest Rate Cuts Expected from Fed
The Federal Reserve is set to announce its interest rate decision today at 22:00 (local time). Along with the rate decision, economic projections and “dot plot” interest rate forecasts will also be shared. Half an hour later, Fed Chair Jerome Powell is expected to provide detailed information to the markets during a press conference.
Markets expect the Fed to lower the interest rate by 25 basis points to a range between 4.25% and 4.5%. This would represent a total reduction of 100 basis points since September. However, expectations for further cuts next year remain lower. Analysts at ING noted that the recovery in the economy and inflation risks might limit interest rate reductions.
Analysts point out that rising costs could influence interest policies. Specifically, immigration restrictions and tariffs are expected to exert pressure on inflation. Powell’s announcements are anticipated to be critical for market direction and will be closely monitored.
Disclaimer: The information contained in this article does not constitute investment advice. Investors should be aware that cryptocurrencies carry high volatility and therefore risk, and should conduct their own research.
