Bitcoin posted gains on Wednesday after a mild recovery, as investors positioned themselves ahead of a widely expected Federal Reserve decision to cut interest rates later today. However, the advance remained limited by expectations of hawkish policy signals.
The world’s largest cryptocurrency rose 1.2% to trade at $92,672.7 at 01:55 Eastern Time (06:55 GMT, after climbing above $94,000 on Tuesday.
Bitcoin has remained range-bound in recent days following one of its steepest monthly declines in years during November, when risk assets broadly retreated.
The Fed is expected to deliver a “hawkish cut”
Market expectations point to a 25-basis-point reduction later today, with probabilities above 85%.
But investors anticipate policymakers will signal that further easing is not guaranteed, given still-elevated inflation and deep divisions inside the Federal Open Market Committee.
With the decision due this evening, comments from Fed Chair Jerome Powell — alongside updated economic projections — will be crucial in shaping market sentiment.
A more hawkish tone could strengthen the US dollar and push Treasury yields higher, reducing appetite for non-yielding, high-risk assets such as Bitcoin.
It could also slow inflows into exchange-traded crypto products, which saw robust demand earlier in the year amid optimism over the global AI-investment cycle and rising institutional exposure to digital assets.
With global markets in wait-and-see mode and volatility elevated, analysts expect Bitcoin to trade within a narrow band until the Fed provides clearer direction.
US regulators: banks can act as intermediaries in crypto transactions
The US Office of the Comptroller of the Currency said Tuesday that American banks are now permitted to act as intermediaries in digital-asset transactions, a move that strengthens integration between the traditional financial sector and the digital-asset economy.
Under the new guidance, national banks may conduct “risk-less principal” crypto transactions — buying and reselling assets simultaneously without holding them on their balance sheets.
The decision aligns with broader regulatory efforts by the current administration to lower barriers between Wall Street and the crypto sector.
Crypto prices today: Ethereum jumps 7%
Most major altcoins recorded gains on Wednesday, outperforming Bitcoin.
Ethereum, the world’s second-largest cryptocurrency, rose 6.8% to $3,323.92.
XRP, the third-largest token, gained 2% to $2.08.
