Bitcoin stabilized around the $29,000 level on Wednesday morning as the market awaited the outcome of the Federal Reserve's monetary policy meeting later in the day.
According to data from CoinBase, bitcoin was trading at $29,189 at 1:36 pm Riyadh time. Ethereum fell 0.24% to $1,852, while Ripple dropped 0.67% to 69 cents.
The stabilization in cryptocurrencies comes amid a broad decline in the US dollar as markets expect the Fed to raise interest rates by 25 basis points at its conclusion today, which would put the federal funds target rate in a range between 5.25% to 5.5% — the highest level since 2001.
The Fed's decision later today could have implications for cryptocurrency prices as higher interest rates mean higher yields on traditional assets like bonds, making cryptocurrencies relatively less attractive to investors seeking returns. However, some analysts argue that bitcoin has decoupled from the broader market and may be less impacted by Fed rate hikes.
