Bitcoin Rebounds to $65K as Investors Weigh Looming Fed Decision Risk
Bitcoin's price rebounded to near $65,000 after falling from almost $74,000 to below $63,000. The drop was due to higher-than-expected inflation readings in the U.S., which could delay interest rate cuts by the Federal Reserve. The upcoming Federal Reserve meeting is expected to have a significant impact on the crypto market. The market expects rates to remain unchanged but will closely monitor any adjustments to the dot plot, which provides insight into policymakers' expectations for interest rates over the next year. Bitcoin's price decline was also linked to disappointing inflows into U.S.-listed bitcoin ETFs, partly due to investors' risk aversion ahead of the Federal Open Market Committee meeting. A more hawkish message from the Fed could reduce investors' appetite for risk assets like cryptocurrencies, potentially prolonging the correction.
