Bitcoin Edges Higher Ahead of Fed Decision

Dow Jones14:58

Bitcoin edged higher on Wednesday as investors stayed cautious ahead of the Federal Reserve's interest-rate decision.

The flagship cryptocurrency was 0.1% higher at $80,799, after recovered above the $80,000 threshold during the previous session. Equities rebounded this week as optimism around artificial intelligence returned to markets, and bitcoin eventually caught up.

With the Fed tipped to hold, investors will look for signaling on when the next rate hike might come as oil prices and inflation stay elevated.

Markets expect one rate increase before year-end and further tightening in 2027, according to the CME Fedwatch tool. "That outlook has supported the U.S. dollar and provided a floor for Treasury yields, creating a less favorable backdrop for bitcoin," said Van Ha Trinh, markets strategist at CFD trading platform Exness.

Renewed optimism around artificial intelligence has improved broader risk sentiment, but momentum has so far failed to translate into meaningful demand for the cryptocurrency, he added.

Ether was 0.1% higher at $2,349.77.

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