Bitcoin Drops as Traders Await Federal Reserve Decision

Bitcoin fell on Tuesday, extending its cautious performance from the previous session, as investors awaited the U.S. Federal Reserve’s policy meeting, set to begin later in the day.

As of 02:32 ET (06:32 GMT), the world’s largest cryptocurrency dropped 1% to $82,415.50, reflecting ongoing market uncertainty.

Fed Policy Decision in Focus

Bitcoin has seen muted price action this month, declining 2% so far, as traders remain hesitant in the absence of clear risk-on signals. Meanwhile, gold prices hit another record high on Tuesday, underscoring its appeal as a safe-haven asset.

Investors are closely watching the March 18-19 Federal Reserve meeting, where interest rates are expected to remain unchanged. The Fed’s commentary on President Donald Trump’s tariff policies and their potential impact on inflation and economic growth will be a key focus.

A hawkish Fed stance amid economic uncertainties could further weigh on Bitcoin, as higher borrowing costs and a risk-averse environment generally reduce demand for speculative assets. Additionally, expectations of easing inflation under a strict monetary policy diminish Bitcoin’s appeal as a hedge against rising prices.

Canary Capital Seeks Approval for Sui-Based ETF

In regulatory news, Canary Capital Group has filed for approval to launch an exchange-traded fund (ETF) tied to the spot price of Sui, the native cryptocurrency of the Sui Network.

This marks Canary Capital’s sixth ETF application with the U.S. Securities and Exchange Commission (SEC), reflecting growing optimism for regulatory approval.

“The proposed ETF would offer institutional and retail investors direct exposure to SUI through a familiar investment structure,” the Sui Foundation said in a statement.

The SEC’s decision remains pending, with approvals potentially contingent on the confirmation of the new SEC chair.

Altcoins Decline Alongside Bitcoin

The broader cryptocurrency market mirrored Bitcoin’s losses on Tuesday, with most altcoins trading lower.

• Ethereum (ETH) held steady at $1,895.36.
• XRP fell 3.3% to $2.2528.
• Solana (SOL) declined 3.4%, while Cardano (ADA) lost 1.7% and Polygon (MATIC) dropped 2.8%.
• Meme tokens also saw losses, with Dogecoin (DOGE) down 3.1% and $TRUMP falling 3.5%.

Market sentiment remains cautious ahead of the Fed’s policy decision, with risk appetite subdued across the crypto space.