Bitcoin rises ahead of Fed decision

The crypto market is rising ahead of the Federal Reserve's rate decision.

The crypto market is rising ahead of the Federal Reserve's rate decision. On Wednesday, September 17, the Federal Reserve will meet, with a cut in the policy rate virtually certain.

Despite recently rising inflation figures, the Fed has made clear that weakness in the labor market weighs on them more at the moment. According to market data, 96 percent of investors expect a 25 basis point rate cut, bringing the rate to 4.25 percent. A small minority even expects a larger cut of 50 basis points, to 4.0 percent.

Lower rates typically weigh on the yields of government bonds and other fixed-income assets, causing investors to look more toward alternative assets like Bitcoin. That expectation is already showing up in higher prices in the crypto market.

In the past week, Bitcoin rose 4.7 percent, Ethereum posted an 8.2 percent gain, and Solana jumped as much as 16.9 percent. Still, the so-called Crypto Fear & Greed Index remains at a notably moderate 51 points. That suggests the current rally could still have room to run.