Bitcoin Price Prediction: BTC Rises Ahead of Fed Rate Cut Decision & New Crypto Regulations
Introduction:
The price of Bitcoin (BTC) is trading higher as investors brace for a pivotal U.S. Federal Reserve interest rate decision. This article provides a Bitcoin price prediction and analyzes how a potentially hawkish Fed rate cut could impact the crypto market. We’ll also break down a major new crypto regulation allowing U.S. banks to act as intermediaries, and review today’s surging altcoin prices like Ethereum and Solana.
Bitcoin Gains Ahead of Federal Reserve Policy Decision
Bitcoin traded higher on Wednesday, with BTC price action showing a modest rebound. Investors are positioning ahead of a widely expected U.S. Federal Reserve rate cut later in the day. However, gains were limited by anticipation of hawkish policy signals from the central bank.
The world’s largest cryptocurrency last traded 1.2% higher at $92,672. It had briefly jumped above $94,000 on Tuesday. Bitcoin has remained rangebound recently following one of its sharpest monthly declines in years during November.
Fed Expected to Deliver a Hawkish Interest Rate Cut
Markets are pricing in a 25-basis-point Fed rate cut, with odds showing over an 85% chance. The key focus, however, will be the Fed's messaging.
Investors expect policymakers to signal that further easing is not guaranteed. This hawkish tone is likely due to still-elevated inflation and internal divisions within the Federal Open Market Committee (FOMC).
Why This Matters for Crypto:
A hawkish Fed could strengthen the U.S. dollar and push Treasury yields higher. This typically reduces appetite for non-yielding risk assets like Bitcoin. It could also slow the pace of inflows into cryptocurrency-linked exchange-traded funds (ETFs).
With global markets on hold and volatility elevated, analysts expect Bitcoin to trade in a tight range until the Fed decision provides clearer direction.
Major Crypto Regulation: U.S. Banks Can Now Act as Crypto Intermediaries
In significant crypto news, a U.S. bank regulator announced a move that further integrates traditional finance with digital assets.
The Office of the Comptroller of the Currency (OCC) stated on Tuesday that U.S. banks will now be allowed to act as intermediaries in cryptocurrency transactions. This crypto regulation shift is part of a broader push to lower barriers between Wall Street and the crypto sector.
Under the new guidance, national banks can perform “riskless principal” transactions. This means they can broker crypto trades by buying and simultaneously reselling assets without holding them on their balance sheets.
Crypto Price Today: Altcoins Outperform Bitcoin
While BTC saw gains, altcoin prices surged even more on Wednesday, leading a broad cryptocurrency market rally.
Ethereum (ETH): The world's No. 2 crypto jumped 6.8% to $3,323.92.
XRP: Gained 2% to $2.08.
Solana (SOL): Rose 5%.
Cardano (ADA): Surged 9%.
Polygon (MATIC): Added 2.5%.
Meme tokens also participated, with both Dogecoin and $TRUMP rising nearly 4%.
Disclaimer: This article contains financial news and analysis for informational purposes only. It is not investment advice. The cryptocurrency market is highly volatile; please conduct your own research before trading.
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