Bitcoin Drops to $82.4K as Fed Meeting Sparks Market Caution

Bitcoin fell 1% to $82,415.50 early Tuesday, extending its subdued performance as investors awaited the U.S. Federal Reserve’s policy meeting. The world's largest cryptocurrency has slipped 2% this month, reflecting cautious sentiment amid economic uncertainties. Meanwhile, gold surged to a new record high, drawing investors toward safe-haven assets.

The Federal Reserve’s March 18-19 meeting is expected to keep interest rates steady while maintaining a hawkish stance. Traders are closely monitoring the Fed’s outlook on inflation and economic growth, particularly in response to President Donald Trump’s new tariff policies. Higher borrowing costs generally reduce risk appetite, leading to weaker demand for speculative assets like Bitcoin. Additionally, expectations of easing inflation could diminish Bitcoin’s appeal as an inflation hedge.

Broader crypto markets also declined, with Ethereum holding at $1,895.36, while XRP dropped 3.3% to $2.2528. Solana fell 3.4%, Cardano lost 1.7%, and Polygon declined 2.8%. Meme tokens were not spared, as Dogecoin slid 3.1%, and $TRUMP shed 3.5%.

In regulatory news, Canary Capital Group has filed for SEC approval of an ETF tied to the Sui cryptocurrency. This marks the firm’s sixth crypto ETF application, signaling growing optimism for regulatory acceptance. If approved, the ETF would provide institutional and retail investors direct exposure to SUI in a structured investment vehicle. The SEC’s final decision may depend on the confirmation of a new chair.

As the Fed meeting unfolds, market participants are looking for cues that could shift sentiment in the crypto space.