Bitcoin slipped slightly on Tuesday as investors remained cautious ahead of the Federal Reserve’s policy meeting, which begins later today. Markets are widely expecting the Fed to deliver a rate cut, keeping traders on alert.
The world’s largest cryptocurrency traded 1.5% lower at $90,011.6 at 01:16 ET (06:16 GMT). Throughout the session, Bitcoin moved narrowly between the $90,000 and $92,000 range.
Traders Turn Cautious Ahead of Fed Decision
Bitcoin continued to show signs of consolidation as market participants avoided taking new positions before key macroeconomic signals. Expectations for a 25-basis-point rate cut at the Fed’s meeting on December 9–10 remain high, with Fed funds futures pricing in an 87% probability of a quarter-point reduction.
Support for easier monetary policy has grown as recent U.S. data shows softer momentum. The labor market has cooled, while inflation remains elevated but continues to moderate.
However, not all officials agree on the path forward. Divisions inside the Fed raise the risk that policymakers could surprise markets by holding rates steady instead of easing.
Lower interest rates typically pressure the U.S. dollar and weaken returns on cash and bonds. This environment tends to make alternative, non-yielding assets like Bitcoin more appealing to investors.
Bitcoin’s strong recovery at the end of 2024 was driven largely by expectations of a prolonged Fed easing cycle.
Strategy Expands Holdings With 10,624 BTC Purchase
Strategy (NASDAQ: MSTR), the largest publicly traded Bitcoin-treasury company, announced on Monday that it had acquired an additional 10,624 BTC. This brings its total holdings to roughly 660,624 Bitcoin.
The purchase occurred between December 1 and December 7 at an average price of about $90,615 per coin.
The move comes as Strategy faces potential removal from major benchmark indexes such as MSCI. Any exclusion could trigger significant outflows and weigh on the firm’s share price.
Crypto Market Today: Altcoins Drift Lower
Most major altcoins traded lower on Tuesday amid a broader risk-off tone in global markets.
Ether, the world’s second-largest cryptocurrency, slipped 0.8% to $3,104.92.
XRP, the third-largest token, fell 1.4% to $2.05.
Solana and Polygon each declined 2%, while Cardano remained mostly unchanged.
Among meme tokens, both Dogecoin and $TRUMP slipped nearly 1%.
