By Elsa Ohlen
Bitcoin price edged down early Monday as the crypto sector that appeared to be on hold ahead of the Federal Reserve's interest rate decision Wednesday.
The world's largest digital coin by market value, Bitcoin, is down 0.3% to $94,620 over the last 24 hours, according to CoinDesk. XRP and Ether fell 3.1% and 1.2%, respectively.
Cryptos typically react to macroeconomic events such an interest rate cuts and hikes, as well as trade policy more recently. The Federal Open Market Committee, or FOMC, is meeting over Tuesday and Wednesday to make its next decision on rates.
If the Fed decides to lower rates, or indicates that it will lower borrowing costs more quickly or aggressively than expected, that could have a positive effect on crypto prices. That is because lower interest rates typically increase traders' appetite for riskier assets such as digital coins.
Traders are however currently pricing in a 96% chance that the Fed will hold interest rates at their current level, according to the CME FedWatch tool.
Write to Elsa Ohlen at elsa.ohlen@barrons.com
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(END) Dow Jones Newswires
May 06, 2025 03:44 ET (07:44 GMT)
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