Bitcoin Falls 0.7% to $115,772 as Traders Await Fed Rate Decision

Bitcoin prices edged lower on Tuesday, halting a week-long recovery as traders braced for the U.S. Federal Reserve’s upcoming interest rate decision. The leading cryptocurrency dropped 0.7% to $115,772.1 by 01:17 ET (05:17 GMT), weighed by uncertainty over the Fed’s stance on future monetary policy.

Markets widely expect a 25 basis point rate cut during the Fed’s September 16-17 meeting. However, sticky inflation linked to higher U.S. tariffs has kept policymakers cautious, leaving investors unsure about the pace of additional easing. While lower rates generally boost speculative assets like crypto by improving liquidity, traders remain wary until there is more clarity.

Optimism over potential cuts helped push Wall Street indexes to record highs, but the crypto market failed to mirror those gains. Even with continued Bitcoin buying from top corporate holder MicroStrategy (NASDAQ:MSTR), momentum stalled amid doubts over the sustainability of corporate treasuries.

Adding to the industry’s spotlight, the U.S. Securities and Exchange Commission announced a settlement with Gemini regarding its Earn program. Regulators had accused the exchange of offering unregistered securities through the lending platform, which collapsed alongside Genesis Global after FTX’s downfall in 2022. Gemini, now listed on Nasdaq as Gemini Space Station Ltd (NASDAQ:GEMI), said the settlement will close the case.

Altcoins tracked Bitcoin lower, with Ethereum falling 2.9% to $4,528.16 and XRP slipping 2.2% to $2.9995. Solana lost 3.2%, Cardano dropped 4.4%, while meme coins also declined—Dogecoin fell 4.9% and $TRUMP slid 3.4%.

Overall, caution ahead of the Fed decision kept crypto buyers on the sidelines, signaling that market direction will likely hinge on the central bank’s rate outlook.