Bitcoin Slips as Traders Eye Fed Decision, Trump’s Crypto Stance

Bitcoin dipped 0.5% to $102,140.0 by 08:14 ET (13:14 GMT) on Wednesday, as bargain buying failed to fully offset recent losses. Sentiment remained fragile amid uncertainty over U.S. trade policy, Federal Reserve rate decisions, and crypto regulations.

Key Market Factors

1. Trump’s Trade and Crypto Policies Create Uncertainty

• The White House reaffirmed President Donald Trump’s plans to impose tariffs on China, Canada, and Mexico, adding to market uncertainty.
• Trump recently signed an executive order calling for a crypto regulatory framework and a potential national digital asset reserve but did not mention Bitcoin, leaving the industry in limbo.

2. Federal Reserve Meeting Looms Over Markets

• The Fed is expected to keep interest rates steady as inflation remains above the 2% target.
• Fed Chair Jerome Powell is likely to push back against Trump’s calls for deeper rate cuts, signaling a hawkish stance that could weigh on risk assets like Bitcoin.

Market Sentiment Remains Cautious

Despite overnight gains on Wall Street, crypto traders remained risk-averse, especially with concerns over China’s DeepSeek AI model still lingering in global financial markets. Wall Street futures slipped in Asian trading, reflecting continued unease.

With regulatory uncertainty and rate hike fears still at play, Bitcoin’s short-term outlook remains volatile as traders await further clarity from both the Fed and the White House.