Bitcoin Dips 2% as Investors Await Widely-Anticipated Fed Rate Cuts

TL;DR

• BTC is down 2% in the last 24 hours and is trading below the $59k mark.

• The poor performance comes ahead of expectations of the U.S. Federal Reserve cutting rates.

BTC Slips Below $59k Ahead of Expected Rate Cuts

The cryptocurrency market began the new week negatively, with most coins and tokens currently in the red. Bitcoin, the leading cryptocurrency by market cap, is down 2% in the last 24 hours and is trading below $59k.

At press time, Bitcoin’s price was $58,894 per coin. The poor performance comes ahead of widely anticipated rate cuts from the United States Federal Reserve. Most investors are expecting a 50 basis points cut or a 25 basis points cut.

The rate cuts mean lower borrowing costs, and historically, the lower the interest rates, the more money investors have to purchase cryptocurrencies and other financial assets. 

While Bitcoin is down 2%, altcoins are also underperforming. Ether is down nearly 5% and risks dropping below $2,300 if the market selloff continues. Solana’s SOL is also down 5% and trades at $131 per coin.

Despite the recent bearish performance, the total cryptocurrency market cap remains above $2 trillion.