After a few sessions filled with positive energy, risk markets took a step back on Tuesday, just one day before the U.S. Federal Reserve’s policy meeting conclusions are released.
As of the latest update, Bitcoin was priced at $81,300, reflecting a decline of 3.5% over the last 24 hours. Other cryptocurrencies such as Solana (SOL), ether (ETH), and XRP also experienced slight increases in their losses.
With a little over an hour remaining in the trading day, the Nasdaq was down by 1.7%, while the S&P 500 fell by 1.1%.
The Federal Open Market Committee commenced its two-day policy meeting today, with the results and Chairman Jerome Powell’s press conference scheduled for Wednesday afternoon U.S. time.
While traders do not anticipate a change in interest rates, they will be on the lookout for hints that the Fed may be adopting a more dovish stance, especially in light of recent market volatility and a decline in inflation rates.
However, the market movements on Tuesday indicate a certain apprehension that the Fed may not be ready to further relax its policies just yet. The decline in inflation witnessed in February was not particularly significant, constituting just one report. Additionally, despite being challenging for many, the market drop has been relatively modest compared to the strong upward trajectory observed in recent years.
According to market indicators, traders currently perceive no likelihood of the Fed lowering rates tomorrow and attribute only a 20% chance that the central bank will ease in its next meeting in May. For June, however, there is a 66% chance of a rate cut.