Markets Slide Ahead of Fed Meeting as Bitcoin Drops 3.5%

Stock and crypto markets pulled back on Tuesday as investors braced for the outcome of the Federal Reserve’s policy meeting.

Bitcoin (BTC) dipped 3.5% over the past 24 hours, trading at $81,300 at press time, while other major cryptocurrencies, including Solana (SOL), Ethereum (ETH), and XRP, also recorded losses.

The broader financial markets reflected similar caution. The Nasdaq fell 1.7%, and the S&P 500 declined by 1.1% with just over an hour remaining in the trading session.

The Federal Open Market Committee (FOMC) kicked off its two-day meeting today, with the much-anticipated decision and a press conference from Fed Chair Jerome Powell scheduled for Wednesday afternoon.

Although the market widely expects the Fed to keep interest rates unchanged, investors are closely monitoring any signals of a shift toward a more accommodative monetary policy, especially in light of recent economic turbulence and moderating inflation.

Tuesday’s sell-off suggests that traders remain cautious, unsure whether the central bank is ready to ease its stance. While inflation cooled slightly in February, some fear it may not be enough to prompt a policy shift. Meanwhile, the recent market pullback, though noticeable, remains mild compared to the strong uptrend in recent years.

According to CME FedWatch data, there is virtually no expectation for a rate cut in Wednesday’s decision. The probability of a cut in May stands at 20%, while traders are pricing in a 66% chance of a rate reduction by June.