Bitcoin and Stocks Retreat as Fed Meeting Looms
Risk assets took a step back on Tuesday as investors awaited the outcome of the Federal Reserve’s latest policy meeting.
Bitcoin (BTC) dropped 3.5% over the past 24 hours, trading at $81,300, while Solana (SOL), Ethereum (ETH), and XRP recorded slightly steeper declines.
Stock markets also struggled, with the Nasdaq down 1.7% and the S&P 500 falling 1.1% with just over an hour left before the closing bell.
The Federal Open Market Committee (FOMC) began its two-day policy meeting today, with Fed Chair Jerome Powell set to deliver remarks on Wednesday afternoon. While no immediate changes to interest rates are expected, traders will be scrutinizing Powell’s comments for any indication of a shift toward a more accommodative stance.
Despite a recent slowdown in inflation, Tuesday’s sell-off suggests investors are uncertain about whether the Fed is ready to ease its policies. The market remains wary that the central bank may wait for more data before committing to rate cuts.
According to CME FedWatch, rate traders currently see no likelihood of a rate cut this week, just a 20% chance of easing in May, and a 66% probability of a cut by June.
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