Bitcoin's price experienced a moderate uptick on Tuesday, inching up by 0.4% to reach approximately $88,296.5 as trading commenced at 01:33 ET (06:33 GMT). Yet, the largest cryptocurrency by market capitalization remains constrained below the $90,000 level, lingering close to the lowest values observed in the preceding month. This subdued momentum signals a cautious market ahead of the Federal Reserve's imminent policy meeting.
After sustaining sharp declines last week, Bitcoin has found difficulty reigniting a robust rally. Year-to-date, it has increased by a mere 1%, underperforming other asset classes despite the US dollar presenting signs of softening – a condition historically favorable for digital currencies.
In contrast, traditional safe-haven assets such as gold and silver continue to ascend, hitting consecutive record highs amid ongoing geopolitical tensions and concerns about global economic growth prospects. This divergence in performance underscores the current market's risk aversion, with investors seeking refuge in tangible assets rather than digital tokens.
The spotlight now turns to the Federal Reserve's two-day policy meeting starting later today. Market consensus forecasts a hold on interest rates, with no adjustments anticipated when the decision is announced on Wednesday. However, traders are keenly observing the Fed's official statement and Chair Jerome Powell's subsequent press briefing for indications regarding future monetary policy, particularly the timing of potential rate cuts and the central bank's inflation expectations.
Any substantive shift in tone from Powell could significantly influence overall risk sentiment and liquidity in financial markets—factors that heavily impact cryptocurrency valuations. Additionally, developments surrounding President Donald Trump's selection of a new Federal Reserve chair remain under scrutiny, as a new appointee could sway the institution's policy trajectory and market expectations over the longer term.
Meanwhile, Japan is poised to enter the crypto exchange-traded fund (ETF) arena, with reports indicating that regulatory approval could allow the listing of the nation's first BTC-related ETFs by as early as 2028. The Financial Services Agency aims to include cryptocurrencies among eligible ETF asset classes, with enhanced investor protections implemented alongside these offerings. Institutional players such as Nomura Holdings and SBI Holdings are reportedly preparing ETF products, pending authorization from the Tokyo Stock Exchange.
Altcoins registered modest gains in a generally rangebound session. Ethereum, ranked second by market capitalization, climbed 1.5% to approximately $2,935.92, while XRP advanced 1.1% to near $1.90. Both Solana and Cardano saw 1.5% increases, contrasted by Polygon, which declined by over 3%. Meme coins presented mixed results, as Dogecoin rose 0.6% and $TRUMP token fell 1.1%.