Bitcoin Price Breaks Record Streak. The Fed Rate Decision Is Weighing on the Crypto. — Barrons.com
2024-12-18
Category: None

By Elsa Ohlen
Bitcoin price fell early Wednesday, pulling back somewhat from a record high earlier this week as investors' attention turned to the next interest rate decision by the Federal Reserve.
The world's largest cryptocurrency is down 3.2% over the last 24 hours to $103,989, according to CoinDesk data. It hit an all-time high of $108,267 Tuesday afternoon — the second straight day of reaching record highs.
Cryptocurrencies across the board got a boost Tuesday after Ripple, the payment platform that issues the digital token XRP, which used to settle payments on its platform, announced the beginning of trading of a new stablecoin under the name RLUSD.
The Bitcoin rally has been fueled by expectations that the incoming Trump administration will be crypto-friendly. Wednesday's pause could be due to caution ahead of the Fed decision later Wednesday.
Cryptocurrencies are generally considered a risky investment and tend to rise when the Fed cuts rates. While the central bank is almost certain to cut rates by 25 basis points, its chair Jerome Powell is increasingly expected to hint that the monetary cutting cycle could ease in 2025.
The Fed decision will be announced at 2 p.m. Eastern time, followed by Powell's press conference.
Write to Elsa Ohlen at elsa.ohlen@barrons.com
This content was created by Barron's, which is operated by Dow Jones & Co. Barron's is published independently from Dow Jones Newswires and The Wall Street Journal.