Investing.com-- Bitcoin’s price moved little on Wednesday, steadying after recent losses as traders hunkered down before more cues on U.S. interest rates from the Federal Reserve and inflation data.
A rebound in the world’s biggest cryptocurrency ran dry this week as traders priced in a slower pace of interest rate cuts by the Fed in the coming months. Pressure from a firmer dollar also weighed on broader crypto markets, while risk appetite soured.
Bitcoin fell 0.1% to $62,466.2 by 01:50 ET (05:50 GMT).
Fed minutes, inflation data on tap
Focus was now squarely on the minutes of the Fed’s September meeting, due later on Wednesday, for more cues on interest rates. The central bank cut rates by 50 basis points in September and announced the start of an easing cycle.
Strong payrolls data released last week raised questions over just how much impetus the Fed has to keep cutting rates sharply. Traders were seen pricing in an 84.1% chance the Fed will cut rates by 25 bps in November, and a 15.9% chance rates will remain unchanged, CME Fedwatch showed.
Consumer price index inflation data due on Thursday is also in focus, given that the Fed signaled its pace of future cuts will depend on inflation and the labor market.
Lower rates bode well for speculative assets such as crypto. But a slower pace of rate cuts could keep traders wary of crypto in the near-term, while a higher U.S. terminal rate also bodes poorly for the sector.
Crypto largely ducked an overnight rebound in U.S. stocks.
Bitcoin remains rangebound amid dearth of catalysts
Despite recent volatility, Bitcoin remained largely stuck in a $50,000 to $65,000 trading range seen since June.
Traders are seeking more clear catalysts for pushing up crypto prices, including the launch of options offerings on BlackRock’s spot Bitcoin ETF.
Bitcoin largely lagged a rally in stock markets after the Fed’s September rate cut, and was hit hard by increased risk aversion last week, as markets feared a potential escalation in the Israel-Hamas war.
But one point of support for crypto prices has been the prospect of a Donald Trump victory in the 2024 presidential elections. Crypto betting platform Polymarket showed Trump leading Vice President Kamala Harris by 53.4% to 45.9%.
Trump has maintained a pro-crypto stance in recent campaigning.
Crypto price today: altcoins muted
Broader cryptocurrency prices drifted higher, but remained mostly rangebound. World no.2 crypto Ether rose 0.9% to $2,450.46.
SOL, XRP, ADA and MATIC rose marginally, while among meme tokens, DOGE added 1.2%.