Crypto markets were weak on Wednesday after a strong start to the week. Bitcoin fell to nearly $112,000 before recovering to around $113,000, down 1.2% in 24 hours, while Ethereum and most altcoins also posted losses.
The decline comes ahead of the FOMC meeting where the Federal Reserve is expected to cut interest rates by 0.25%. Analysts say the decision could determine the direction of the crypto market in the short term, either soaring above $120,000 or falling below $100,000.
In theory, lower interest rates are seen as a positive factor for digital assets, as they weaken the appeal of traditional investments and could increase demand for crypto.
Bitcoin’s market cap is currently worth around $2.25 trillion, with a market dominance of almost 59%, indicating that it remains strong against altcoins despite the near-term price pressure.
Market attention is now focused on the FOMC meeting.
