Bitcoin lost modest ground on Wednesday but still traded near $105,000 following a 2% drop yesterday.
It comes as traders await the Federal Reserve’s policy decisions later today, which could hurt high-risk assets such as bitcoin.
Concerns were allayed in the markets as investors shrug off President Trump’s threats to enter the conflict against Iran.
Focus on Fed
Traders are now focused on the Federal Reserve’s policy decisions later today, expected to hold rates unchanged at below 4.5%.
The Fed will provide its forecasts for US growth, inflation, and interest rates this year, crucial for influencing the market’s future outlook.
Bitcoin hit $103,371 on Tuesday amid the Middle Easter tensions, which entered its sixth day with news about a potential US entry.
Escalation at any point remains possible and could shake the markets if Trump went ahead with a threat to strike Iranian positions.
Positive Signs
Despite the geopolitical concerns, there were positive legal signals, with the US Senate passing the GENIUS bill regulating Stablecoins, in wait for a similar approval by the House then the President.
It’s an important achievement for the crypto industry and puts a legal framework for their operations, boosting their credibility.
Trump Media Seeks Launch of Crypto ETFs
The Trump Media & Technology Group sent a request to the SEC to launch new bitcoin and ethereum ETFs according to a new filing.
This is the second such request of the Trump group, and will join a jam packed market for such ETFs in the US in recent months.
Otherwise, recent Faraside Investors data showed investments into bitcoin ETFs surged to $408.6 million on Monday, the second highest this month.
