Bitcoin moved higher on Wednesday following a modest rebound, as traders positioned themselves ahead of an expected U.S. Federal Reserve interest rate cut. However, gains remained limited because markets still anticipate a hawkish tone from the central bank.
By 01:55 ET (06:55 GMT), the world’s largest cryptocurrency was trading 1.2% higher at $92,672.7, after briefly rising above $94,000 on Tuesday.
Bitcoin has been trading in a narrow range in recent days. This follows one of its steepest monthly declines in years during November, when risk assets saw widespread selling.
Fed Expected to Deliver a ‘Hawkish Cut’
Markets are pricing in a 25 basis-point cut, with more than an 85% probability. But investors expect policymakers to signal that additional rate cuts are not guaranteed. Inflation remains elevated, and members of the Federal Open Market Committee appear divided.
As the decision approaches, comments from Fed Chair Jerome Powell and updated economic projections will be key drivers of market sentiment.
A hawkish message may boost the U.S. dollar and lift Treasury yields. This could reduce appetite for non-yielding risk assets like Bitcoin, while also slowing inflows into crypto-linked exchange-traded products. These inflows surged earlier this year amid strong interest in artificial intelligence–related investments and rising institutional participation.
With global markets cautious and volatility still elevated, analysts expect Bitcoin to stay rangebound until the Fed provides clearer guidance.
US Banks Cleared to Act as Crypto Intermediaries
In a major regulatory shift, the Office of the Comptroller of the Currency (OCC) announced that U.S. banks are now allowed to act as intermediaries in cryptocurrency transactions. Banks can perform “riskless principal” trades, meaning they can buy and instantly resell crypto assets without holding them on their balance sheets.
This development is part of a broader effort from regulators to bridge traditional finance and the digital asset sector.
Crypto Market Today: Altcoins Outperform Bitcoin
Altcoins posted stronger gains than Bitcoin on Wednesday.
- Ethereum climbed 6.8% to $3,323.92.
- XRP rose 2% to $2.08.
- Solana gained 5%.
- Cardano jumped 9%.
- Polygon added 2.5%.
- Meme tokens Dogecoin and $TRUMP each rose nearly 4%.
