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Bitcoin dipped on Tuesday as investors adopted a risk-off stance ahead of the Federal Reserve’s policy meeting, where markets widely expect an interest-rate cut.
The world’s largest cryptocurrency was last down 1.5% at $90,011.6 by 01:16 ET (06:16 GMT), holding within a narrow $90,000–$92,000 trading band.
Caution Prevails Ahead of Fed Rate Decision
Bitcoin’s consolidation reflected broader market caution, with traders avoiding major positions before the Fed outcome.
Expectations remain firm for a 25-basis-point rate reduction at the Dec. 9–10 meeting, with Fed funds futures pricing in an 87% probability of a cut.
The case for easing continues to grow, supported by:
- Cooling U.S. labor-market indicators
- Moderating, though persistent, inflation
- Soft economic momentum
However, divisions within the Fed persist. Policymakers have expressed mixed views on growth and inflation risks, leaving room for a potential surprise hold, which could inject short-term volatility into risk assets.
Lower interest rates generally weaken the dollar and reduce yields on cash and bonds — a macro backdrop that tends to support Bitcoin and other non-yielding assets.
Bitcoin’s broader recovery, which began in late 2024, has been underpinned by expectations of an extended Fed easing cycle.
Strategy Adds to Record Bitcoin Holdings
Strategy (NASDAQ: MSTR), the world’s largest corporate holder of Bitcoin, disclosed on Monday that it purchased an additional 10,624 BTC, bringing its total treasury to around 660,624 BTC.
The latest acquisition — executed between Dec. 1 and Dec. 7 at an average price of $90,615 per coin — comes as the company faces possible removal from major MSCI indexes, a shift that could trigger passive fund outflows and pressure its share price.
Crypto Market Today: Altcoins Drift Lower
Altcoins tracked Bitcoin’s subdued tone, slipping in early Tuesday trade:
- Ethereum (ETH): -0.8% to $3,104.92
- XRP: -1.4% to $2.05
- Solana, Polygon: -2% each
- Cardano: Flat
- Dogecoin, $TRUMP: -1% each
The overall mood across digital assets remained cautious as traders awaited direction from the Fed.
