Bitcoin posted modest gains during Wednesday’s session, benefiting from a mild rebound as investors await the U.S. Federal Reserve’s interest rate decision, which estimates suggest could include a 25 basis point cut. Despite the uptick, gains remained limited amid expectations that the central bank may deliver hawkish signals regarding the future path of monetary policy. The world’s largest cryptocurrency was trading near $92,673 after touching a temporary peak above $94,000 in Tuesday’s session.
These movements come as Bitcoin has remained trapped in a narrow sideways range in recent days, following one of its sharpest monthly declines in November, when risk assets came under heavy selling pressure. This price behavior clearly reflects the cautious, wait and see sentiment dominating markets ahead of the highly anticipated policy decision.
Markets are currently pricing in a more than 85% probability of a quarter-point rate cut, but attention is primarily focused on the tone of the accompanying statement, comments from Fed Chair Jerome Powell, and the updated economic projections. Investors remain wary that the decision could carry a “hawkish” undertone, signaling that the easing cycle may be limited, given still-elevated inflation and ongoing divisions among policymakers over the outlook for growth and prices.
If the Fed adopts a cautious stance, the U.S. dollar could receive additional support alongside rising Treasury yields, which would likely weigh on demand for non yielding assets such as Bitcoin. It could also slow the pace of capital inflows into cryptocurrency linked investment products, which had seen strong momentum earlier this year fueled by expanding institutional participation and optimism surrounding the global artificial intelligence investment cycle.
In a notable regulatory development, the U.S. Office of the Comptroller of the Currency announced that banks will be allowed to act as intermediaries in cryptocurrency transactions, opening the door for a larger role for traditional financial institutions within the digital asset ecosystem through brokerage style operations without holding crypto assets on their balance sheets.
As for altcoins, the overall picture appeared more constructive, with most major tokens posting solid gains. Ethereum led the advance with a strong rally, while Solana, Cardano, and Polygon recorded notable increases. Meme tokens also moved higher. This performance reflects a gradual return of selective risk appetite, while the broader market direction remains firmly tied to the outcome of the Federal Reserve’s decision in the coming hours.
Stay informed about global markets through our previous analyses. and Now, you can also benefit from LDN company services via the LDN Global Markets trading platform.
