Investing.com-- Bitcoin retreated on Tuesday as the U.S. Federal Reserve kicked off its two-day meeting ahead of a rate decision on Wednesday.
The world’s largest cryptocurrency fell 2.2% to $82,038.9 by 4:00 p.m. ET (20:00 GMT).
Fed rate decision looms, investors seek clarity around tariff uncertainties
Bitcoin saw marginal moves this month, and the token has fallen 2% so far this month, as traders await clear signals for risk-on sentiment. In contrast, gold prices hit another record high on Tuesday on the back of its safe-haven appeal.
Crypto investors were cautious ahead of the Federal Reserve’s policy meeting scheduled for March 18-19, where interest rates are expected to remain steady at the end of the meeting.
Market participants will closely gauge the Fed’s commentary on President Donald Trump’s recent tariff policies and the potential implications for inflation and economic growth.
The Fed is expected to maintain its hawkish outlook amid economic uncertainties.
Higher borrowing costs and a risk-averse environment drive investors away from speculative assets like Bitcoin, leading to lower demand. Additionally, expectations of reduced inflation under a hawkish Fed diminish Bitcoin’s appeal as a hedge, further weighing on its price.
Canary Capital seeks approval for Sui-based ETF
Digital assets investment firm Canary Capital Group has filed for regulatory approval to launch an exchange-traded fund (ETF) linked to the spot price of Sui, a cryptocurrency associated with the Sui Network.
This filing marks the firm’s sixth cryptocurrency ETF application with the U.S. Securities and Exchange Commission (SEC), reflecting increased optimism for regulatory approval under the current administration.
“The proposed ETF would offer institutional and retail investors direct exposure to SUI, the native token of the Sui network, via a familiar product structure,” Sui Foundation said in a statement.
The SEC’s decision on these applications is pending, with final approvals potentially awaiting the confirmation of the new SEC chair.
Strategy to issue new preferred shares to fund more Bitcoin purchases
MicroStrategy (NASDAQ:MSTR), now rebranded as Strategy, plans to issue 5 million shares of its Series A Perpetual Preferred Stock to raise $500 million, primarily for Bitcoin purchases, according to an SEC filing.
Unlike common stock, these shares lack voting rights but offer a fixed 10% annual dividend, payable quarterly in cash. Missed payments accumulate at a rising rate, capped at 18%. This structure allows the company to raise funds without diluting shareholder control.
Strategy continues its aggressive Bitcoin accumulation, acquiring 130 BTC for $10.7 million between March 10 and March 16 at an average price of $82,981 per coin.
Crypto price today: most altcoins fall tracking Bitcoin
Most altcoins were also lower on Tuesday, extending declines.
World no.2 crypto Ethereum moved 1.8% lower to $1,906.58.
World no. 3 crypto XRP declined 4% to $2.26.
Solana dropped 3.6%, while Cardano lost 3.5% and Polygon tumbled 4%.
Among meme tokens, Dogecoin was trading 4.7% lower, while $TRUMP fell 5%.
Spot Bitcoin ETFs see biggest net inflows in six weeks
U.S. spot Bitcoin ETFs saw $274.6 million in net inflows on Monday, the highest daily total since February 4.
Bitcoin ETFs have faced sustained selling pressure in recent weeks, experiencing five straight weeks of net outflows. During this period, roughly $5.4 billion exited the funds, according to SoSoValue data.
The Monday inflows were led by Fidelity’s FBTC at $127.3 million.
Ayushman Ojha contributed to this report.