Bitcoin retreated, and the market was tense ahead of the release of the Federal Reserve meeting results.
The Nasdaq and S&P 500 indices both fell more than 1% about an hour before the close.
Key information:
- On Tuesday, cryptocurrencies and the US stock market fell together.
- The Federal Reserve is holding a policy meeting today, and the results will be announced tomorrow afternoon US time.
- No one currently expects the Federal Reserve to cut interest rates tomorrow, but given the recent economic and market uncertainty, investors will be watching to see if the Federal Reserve takes a more dovish stance.
After a few days of positive momentum, the risk market retreated again on Tuesday, and the results of the Federal Reserve policy meeting this week will be announced a day later.
As of the time of writing, the price of Bitcoin is $81,300, down 3.5% in the past 24 hours. The declines of Solana (SOL), Ethereum (ETH), and XRP were slightly larger.
The Federal Open Market Committee began its two-day policy meeting today, and the results and the post-meeting press conference by Chairman Powell are scheduled for Wednesday afternoon US time.
While no one expects a change in interest rates, traders will be watching to see if the Federal Reserve shows more dovish signs due to recent market volatility and easing inflation.
However, the market performance on Tuesday showed the market's nervousness that the Federal Reserve may not be ready to further ease policy. After all, the decline in inflation in February was not significant, and it was just a single report. And while the market decline is painful for many, given the strong market gains in recent years, the magnitude of this decline is also relatively moderate.
According to CME FedWatch data, interest rate traders today believe the probability of the Federal Reserve cutting rates tomorrow is zero, and the probability of a rate cut at the next May meeting is only 20%. However, by June, the market believes the probability of a Federal Reserve rate cut is 66%.
