Market Retreat Ahead of Fed Meeting

After a series of positive sessions, risk markets retreated on Tuesday, one day before the U.S. Federal Reserve policy meeting results.

Bitcoin was trading at $81,300, down 3.5% over the past 24 hours. Other cryptocurrencies like Solana (SOL), ether (ETH), and XRP also experienced modest losses.

As the trading day neared its end, the Nasdaq was down 1.7% and the S&P 500 down 1.1%.

The Federal Open Market Committee began its two-day policy meeting, with results and Chairman Jerome Powell’s press conference scheduled for Wednesday afternoon U.S. time. While no changes in interest rates are anticipated, traders are looking for hints of a more dovish stance by the Fed due to recent market volatility and a slowdown in inflation.

However, Tuesday’s market action reflects concerns that the Fed might not be ready to ease policies just yet. The decline in inflation since February has been slight and based on just one report. Although the market downturn has been challenging for many, it remains modest compared to the strong upward trend seen in the past few years.

According to CME FedWatch, traders currently see no chance of a rate cut tomorrow and only a 20% likelihood of easing at the next meeting in May. For June, the expectation of a rate cut rises to 66%.