After retreating below $90,000 on Tuesday, the price of Bitcoin witnessed a rapid rebound above $92,000.#BTCVSGOLD
Bitcoin was traded up 3% to $92,605.18 on Wednesday morning, while the price of Ethereum jumped 7% to $3,323.1, Solana increased 5% to $139.35, and Ripple rose 1.8% to $2.0904.
The price of Bitcoin fluctuates, as investors remain cautious ahead of the U.S. Federal Reserve's monetary policy decision later today, amid widespread expectations of interest rate cuts.
Expectations remain strong that the Fed will lower interest rates by a quarter of a percentage point, as futures contracts indicate a likelihood of about 87% for this cut.
Expectations for accommodative policy are based on U.S. data that has weakened in recent weeks, specifically a slowdown in the labor market and a decrease in inflation, although it remains high.
However, there is no consensus within the Fed, as officials remain divided on the path of growth and inflation, leaving the door open for the possibility of a surprise by maintaining the current policy unchanged.
Typically, lowering interest rates tends to weaken the dollar and reduce returns on cash and fixed-income assets, making non-yielding alternative assets like Bitcoin more attractive.
The return of Bitcoin to rising prices since the end of 2024 has been largely driven by expectations of an extended monetary easing cycle by the Fed.
