Bitcoin traded slightly lower on Wednesday as cryptocurrency investors awaited fresh signals on US interest rates from the Federal Reserve’s policy meeting.
The world’s largest cryptocurrency fell 1.4% to around $65,128 by 9:46 a.m. ET. The decline interrupted a recent recovery driven by optimism surrounding a potential US-Iran peace agreement.
Bitcoin ETF Outflows Begin to Ease
Slowing withdrawals from spot Bitcoin exchange-traded funds provided some support to the market.
However, Bitcoin ETFs remained under pressure after recording five consecutive weeks of substantial outflows. The prolonged trend has limited Bitcoin’s ability to build stronger upward momentum.
Meanwhile, Uniswap emerged as one of the day’s strongest performers following a bullish long-term price forecast from Standard Chartered.
US-Iran Peace Agreement Remains in Focus
Crypto traders are also monitoring the expected signing of a memorandum of understanding between Washington and Tehran.
The agreement is intended to end the recent conflict between the United States and Iran. Progress toward peace has already contributed to lower oil prices and reduced some inflation concerns.
However, uncertainty remains over how quickly energy markets and global trade conditions can return to normal.
Federal Reserve Expected to Hold Interest Rates
The Federal Reserve is widely expected to leave interest rates unchanged following the conclusion of its two-day policy meeting.
This will be the first Fed meeting led by new Chair Kevin Warsh. Investors will closely study his comments for clues about the future direction of monetary policy.
Speculation about a possible interest rate increase has grown in recent weeks. A sharp rise in energy prices during the US-Iran conflict contributed to stronger inflationary pressures.
However, oil prices have declined since Washington and Tehran announced a preliminary peace agreement. This development could influence the Fed’s assessment of inflation risks.
Higher Interest Rates Could Pressure Bitcoin
The prospect of interest rates remaining elevated is generally negative for Bitcoin and other speculative assets.
Higher rates increase returns available from lower-risk investments such as government bonds. As a result, investors may become less willing to hold volatile cryptocurrencies.
Any unexpectedly hawkish message from the Federal Reserve could therefore create additional pressure across the crypto market.
Uniswap Rallies on $100 Price Target
Uniswap’s UNI token rose sharply after Standard Chartered began covering the decentralized finance asset with a long-term price target of $100 by the end of 2030.
UNI climbed as high as $3.729, reaching its strongest level in almost one month. It later gave back part of those gains and traded near $3.30.
Standard Chartered argued that Uniswap could develop into a larger financial market infrastructure provider as tokenized assets gain wider adoption in decentralized finance.
Standard Chartered Predicts Major UNI Growth
The bank expects UNI to reach $6.50 by the end of 2026. That would represent a gain of almost 100% from current levels.
Standard Chartered also forecasts that the token could rise to $20 in 2027 before eventually reaching $100 in 2030.
The bank believes Uniswap could play a greater role in trading and settlement as institutional interest in tokenized assets increases.
The decentralized exchange already supports tokenized versions of several major stocks. It has also recently introduced access to BlackRock’s BUIDL fund through its platform.
Altcoins Trade Lower Before Fed Announcement
The wider cryptocurrency market remained mostly flat or moved lower ahead of the Federal Reserve decision.
Ether declined 1.7% to approximately $1,769. XRP and Solana also fell by around 1.7% each.
BNB gained less than 1%, while Cardano recorded a sharper decline of 4.4%.
Among meme cryptocurrencies, Dogecoin dropped around 1%, while the TRUMP token remained broadly unchanged.
