Investing.com– Bitcoin fell on Wednesday, reversing more of a recent rebound as caution before a Federal Reserve meeting and high-level U.S.-China trade talks kept traders largely averse towards crypto.
The world’s largest crypto also largely lagged an overnight bounce in U.S. technology stocks, with Wall Street cresting record highs on optimism over artificial intelligence. This optimism did not appear to have spilled over into crypto markets.
Bitcoin fell 1% to $112,819.3 by 01:00 ET (05:00 GMT). The world’s largest crypto extended losses into a second straight session after rebounding as far as $116,000.
Fed rate cut, Trump-Xi meeting spur caution in crypto
Markets remained largely risk-averse before the conclusion of a two-day Fed meeting on Wednesday, where the central bank is widely expected to cut interest rates by 25 basis points.
But the rate cut was largely priced in in recent weeks, especially amid increasing signs of cooling inflation and labor market growth.
Caution before the meeting was over Fed Chair Jerome Powell’s outlook on monetary policy, with some analysts suggesting the Fed may signal reluctance to cut rates further.
Market focus was also on an upcoming meeting between U.S. President Donald Trump and Chinese President Xi Jinping. The two will meet in South Korea on Thursday and discuss a further deescalation in their ongoing trade conflict.
Heightened U.S.-China trade tensions battered crypto markets in early-October, sparking a flash-crash in Bitcoin from which the crypto is still struggling to recover.
Bitcoin demand seen recovering, but at slower pace- Glassnode
Crypto analytics firm Glassnode said on Wednesday that Bitcoin’s weekend rebound coincided with U.S. spot exchange-traded fund netflows turning positive.
But the firm also noted that ETF inflows remained well below levels seen at the start of major rallies, suggesting that Bitcoin still had more rangebound days in store.
“Demand is recovering, but not at the intensity of recent rallies,” Glassnode said.
Separately, data from SoSoValue showed U.S. crypto ETFs logging four consecutive days of inflows. But inflow levels were a fraction of those seen during Bitcoin rallies earlier this year.
Crypto price today: altcoins dull, $TRUMP extends gains
Broader crypto prices trended lower on Wednesday, tracking underperformance in Bitcoin.
$TRUMP remained an outlier, surging 11.4% and remaining close to a three-week high.
The altcoin rallied on Tuesday after Trump Media said it will launch a new prediction market feature on Truth.Social, in partnership with Crypto.com.
World no.2 crypto Ether fell 1.1% to $4,023.21, while XRP was flat.
BNB fell 1%, while Solana and Cardano fell between 1.5% and 2%.
Among other memecoins, Dogecoin fell 2.1%.
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