Cryptocurrency investors waited with bated breath for a Federal Reserve policy decision that likely holds the key to whether Bitcoin can avert a drop to levels last seen when the pandemic was raging globally.
The largest token was little changed at $19,000 as of 11:44 a.m. in Singapore on Wednesday, while other major coins like Ether, Solana and Avalanche were also steady. A drop of more than 7% in Bitcoin would send it back to 2020 prices.
Markets could breathe a temporary sigh of relief if the Fed raises borrowing costs by three-quarters of a percentage point again as expected and avoids becoming even more hawkish. But a bigger, one-percentage-point increase to fight inflation might heap pressure on riskier assets by imperiling liquidity.
The MVIS CryptoCompare Digital Assets 100 Index is down this week, taking its losses for 2022 to about 60% compared with 21% for global stocks.