Bitcoin May See Recovery Potential Amid Fed Rate Decision and Upcoming Inflation Data

Key Points

1. Altcoins dropped between 3% and 10% ahead of the U.S. Federal Open Market Committee’s rate decision, reflecting market caution.

2. Bitcoin (BTC) briefly dipped to $116,950 but recovered above $118,000, while the altcoin market capitalization fell from $1.57 trillion to $1.52 trillion.

3. Layer 1 tokens like Binance Coin (BNB), Cardano (ADA), and Solana (SOL) declined by 3%, 2.6%, and 2.2% respectively.

4. Open Interest (OI) across crypto exchanges dropped from $101 billion to $97 billion, indicating reduced leveraged positions.

5. Upcoming inflation data, specifically the Personal Consumption Expenditures (PCE) report, could act as a catalyst for market rebound if it is softer-than-expected.