Bitcoin
and other cryptocurrencies were declining ahead of the Federal Reserve’s decision on interest rates Wednesday. Digital assets may be particularly vulnerable to comments from the central bank suggesting that more interest-rate increases could lie ahead.
The price of
Bitcoin
has retreated 1.3% over the past 24 hours to about $25,920, slipping below the $26,000 and $27,000 range that has dominated for much of the period since the largest digital asset hit a 10-month high above $30,000 in April.
“The bears may have the upper hand right now,” said Alex Kuptsikevich, an analyst at FXPro. “If so, the declines might accelerate, to $25,700, directly leading to $24,800.”
Even though the Fed may keep rates on hold for the first time in more than a year this month, inflation remains too fast for comfort, suggesting the most aggressive campaign to raise rates will resume in July. Higher borrowing costs are anathema to crypto by encouraging investors to choose less-risky assets.
The Fed decision will be announced at 2 p.m. Eastern time, and Federal Reserve Chairman Jerome Powell will hold a press conference just after the announcement. Futures for the
Dow Jones Industrial Average
and
S&P 500
were little changed early on Wednesday.
Other cryptocurrencies were also broadly trading lower.
Ethereum,
the second-biggest coin, was down 0.6%.
Cardano
lost 3.4% and
Polygon
was up 0.2%.
Dogecoin
slipped 0.5%, while
Shiba Inu
climbed 0.6%.
Write to Brian Swint at [email protected]
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