Bitcoin Drops to $82K as Fed Meeting Begins, Crypto Market Declines

Bitcoin dipped 2.2% to $82,038.9 on Tuesday as the U.S. Federal Reserve began its two-day policy meeting ahead of a key interest rate decision. The crypto market remained cautious, with investors seeking clarity on rate direction and the economic impact of new tariff policies under President Donald Trump.

Gold surged to a record high, benefiting from safe-haven demand, while Bitcoin struggled amid a risk-off sentiment. The Fed is expected to maintain its hawkish stance, keeping rates steady while addressing economic uncertainties. Higher borrowing costs and reduced inflation expectations weaken Bitcoin’s appeal as a hedge, leading to lower demand.

Altcoins followed Bitcoin’s downward trend. Ethereum fell 1.8% to $1,906.58, XRP dropped 4% to $2.26, and Solana lost 3.6%. Meme tokens also slid, with Dogecoin down 4.7% and $TRUMP declining 5%.

Meanwhile, U.S. spot Bitcoin ETFs recorded $274.6 million in net inflows on Monday, the highest in six weeks, led by Fidelity’s FBTC with $127.3 million. This influx comes after five consecutive weeks of outflows, totaling $5.4 billion.

In corporate moves, MicroStrategy, now rebranded as Strategy, plans to raise $500 million by issuing 5 million shares of Series A Perpetual Preferred Stock, primarily for Bitcoin purchases. These shares offer a 10% annual dividend but no voting rights, allowing the company to continue its aggressive BTC accumulation.

Additionally, Canary Capital filed for SEC approval to launch a Sui-based ETF, marking its sixth crypto ETF application. Regulatory optimism grows, with final approvals likely dependent on the next SEC chair.

With the Fed’s decision looming, market volatility remains high, influencing Bitcoin and broader crypto trends.