Bitcoin dips as traders await Fed rate decision
Bitcoin slipped on Tuesday, ending its short-lived recovery from the previous week as traders grew cautious ahead of the U.S. Federal Reserve’s upcoming rate decision.
Optimism over a 25-basis-point rate cut had briefly supported prices, but uncertainty about the Fed’s stance on future policy moves kept markets on edge. Concerns about the long-term role of corporate treasuries also weighed on sentiment, with fresh buying by top holder MicroStrategy (NASDAQ:MSTR) failing to lift prices.
At 01:17 ET (05:17 GMT), Bitcoin was down 0.7% at $115,772.1.
Fed policy meeting in focus
Markets are closely watching the Fed’s September 16–17 meeting, where a 25-basis-point cut is widely expected. However, the central bank has remained cautious about committing to future easing, as inflation—fueled by higher U.S. trade tariffs—remains a key challenge.
Lower rates typically support speculative assets like cryptocurrencies by boosting market liquidity. Yet, crypto markets stayed subdued while equities rallied to fresh records in recent sessions.
SEC settles Gemini Earn lawsuit
The U.S. Securities and Exchange Commission reached a settlement with Gemini over its unregistered crypto lending platform, Gemini Earn.
Gemini, now listed on Nasdaq as Gemini Space Station Ltd (NASDAQ:GEMI), confirmed the deal, which resolves the lawsuit that stemmed from partnerships with Genesis Global. The program allowed users to lend Bitcoin and other assets for interest payments. But Genesis suspended withdrawals in November 2022 during the FTX collapse and later filed for bankruptcy. The SEC then sued both Genesis and Gemini in early 2023.
Altcoins retreat alongside Bitcoin
Broader crypto markets mirrored Bitcoin’s weakness on Tuesday. Ether slipped 2.9% to $4,528.16, while XRP fell 2.2% to $2.9995. Solana dropped 3.2%, and Cardano slid 4.4%.
Among meme coins, Dogecoin lost 4.9%, while Trump Coin ($TRUMP) shed 3.4%.
