Bitcoin, the world’s largest cryptocurrency, experienced a slight pullback on Monday as investors eagerly await the Federal Reserve’s highly anticipated interest rate decision. The impending policy change, scheduled for later this week, has markets worldwide on tenterhooks.
Bitcoin dipped as much as 2.8% before recovering somewhat to trade at $58,655. Other major cryptocurrencies, such as Ether and Dogecoin, also faced minor declines.
The much-anticipated rate cut, the first in over four years, is expected to loosen financial conditions, which typically benefits riskier assets like cryptocurrencies. However, uncertainty remains about the extent of the rate reduction and how markets will respond to the Fed’s updated economic projections and Chair Jerome Powell’s post-meeting press conference.
According to Sean McNulty, director of trading at Arbelos Markets, the Fed’s guidance and press conference will be more crucial than the rate cut itself. A significantly dovish tone could lead to a strong rally in Bitcoin.
