Bitcoin traded within a narrow range on Wednesday as cryptocurrency investors waited for fresh guidance from the Federal Reserve on US interest rates.
The world’s largest cryptocurrency slipped 0.3% to $65,847.70 by 01:32 ET, ending part of its recent recovery. Bitcoin had previously benefited from improving market sentiment surrounding a potential US-Iran peace agreement.
Slowing outflows from spot Bitcoin ETFs also provided some support. However, the funds remained on course for a fifth consecutive week of significant withdrawals.
Bitcoin Investors Await the Federal Reserve
The Federal Reserve is widely expected to keep interest rates unchanged following the conclusion of its two-day policy meeting.
Investor attention will therefore focus on the central bank’s economic outlook and any signals about the future direction of monetary policy.
The meeting will be the first led by new Federal Reserve Chair Kevin Warsh. Markets will closely examine his comments for indications that policymakers could consider raising interest rates later in 2026.
Inflation Concerns Raise Rate-Hike Speculation
A recent increase in energy-driven inflation has strengthened speculation that the Fed may need to maintain tighter monetary policy.
Global oil prices rose sharply during the US-Iran conflict, increasing concerns that higher energy costs could create additional inflationary pressure across the American economy.
However, oil prices have since declined after Washington and Tehran announced a preliminary peace agreement. Investors will now assess whether easing energy costs could influence the Fed’s policy stance.
Higher interest rates, or an extended period without rate cuts, would generally be negative for Bitcoin. Elevated borrowing costs tend to reduce demand for speculative and risk-sensitive assets.
US-Iran Peace Agreement Remains in Focus
Cryptocurrency markets are also monitoring an expected memorandum of understanding between the United States and Iran.
The agreement could formally bring their recent conflict to an end and further reduce geopolitical uncertainty.
Improved relations between Washington and Tehran could also support the normalization of global oil supplies, potentially easing inflation concerns.
Uniswap Surges After $100 Price Target
Uniswap’s UNI token emerged as one of the strongest performers in the cryptocurrency market on Wednesday.
UNI jumped 20.5% to $3.5130, reaching its highest level in almost one month. The rally followed Standard Chartered’s decision to begin coverage of the decentralized finance token.
The bank set a long-term price target of $100 for UNI by the end of 2030.
Standard Chartered Sees Major Growth for UNI
Standard Chartered expects Uniswap to become an increasingly important part of the financial market infrastructure as tokenized assets expand across decentralized finance.
The bank forecasts that UNI could rise to $6.50 by the end of 2026, representing an increase of nearly 100% from its current level.
Its projections also place UNI at $20 in 2027 before potentially reaching $100 by the end of the decade.
Uniswap is already the largest decentralized exchange and offers tokenized versions of several major stocks. The platform has also recently provided access to BlackRock’s BUIDL tokenized investment fund.
Standard Chartered believes these developments could help Uniswap gain a larger role in trading, settlement and tokenized asset markets.
Altcoins Trade Cautiously Before Fed Decision
The broader cryptocurrency market remained mostly flat or slightly lower ahead of the Federal Reserve announcement.
Ether outperformed the wider market, rising 1.7% to $1,792.81.
XRP, Solana and BNB each declined by less than 1%, while Cardano dropped 2.6%.
Among major meme coins, Dogecoin and the Official Trump token traded broadly unchanged.
