Bitcoin Slides Ahead of Fed Interest Rate Decision

In anticipation of the interest rate decision by the US Federal Reserve, Bitcoin has significantly lost value. On Wednesday morning, the leading currency of the crypto sphere fell below the symbolic threshold of 60,000 US dollars for the first time since the end of February. Bitcoin was last quoted at 57,810 dollars – a decrease of approximately 2,800 dollars compared to the previous day. The price has been under pressure since the beginning of April, after reaching near-record highs of almost 74,000 dollars in March. Market participants keep emphasizing that volatility is particularly high with Bitcoin. Market observers like Timo Emden from Emden Research view the uncertainty regarding the US monetary policy measures as a major burden. "Currently, caution is in order because nobody wants to be caught off guard by possible monetary policy surprises," explained Emden. There is considerable skepticism about the statements of Jerome Powell, the President of the US Federal Reserve Fed. Accordingly, investors are awaiting the upcoming decisions of the Fed and the publication of the US labor market data this week with a mix of hope and concern. The central bank of the United States has recently been rather reticent. Although in the context of a receding inflation, several rate cuts had been expected this year, which boosted Bitcoin's price, such hopes are now subdued. Inflation is subsiding only slowly, and from the monetary guardians, it is now expected that they will stick to their tight monetary policy. This is reflected in the current turbulence of the cryptocurrency market.