Investing.com – Bitcoin moved little on Wednesday, stabilizing after recent losses as investors huddled ahead of further U.S. interest rate signals from the Federal Reserve and inflation data.

The world’s largest cryptocurrency’s rally fizzled out this week as investors priced in a slower pace of Fed rate cuts in the coming months. Pressure from a stronger dollar has also weighed on broader cryptocurrency markets, while risk appetite has declined.

fell 0.1% to $62,466.2 by 01:50 ET (05:50 GMT).

Fed minutes, real-time inflation data

Attention now turns solely to the September Fed meeting, which is scheduled for Wednesday, for more guidance on interest rates. In September, the central bank lowered interest rates by 50 basis points and announced the start of a monetary policy easing cycle.

Last week’s powerful jobs data release raised questions about what impetus the Fed has to continue cutting interest rates sharply. Traders were pricing in an 84.1% chance that the Fed would cut interest rates by 25 basis points in November and a 15.9% risk of the Fed cutting rates unchanged.

Inflation data released on Thursday is also in focus, given that the Fed has signaled that the pace of future cuts will depend on inflation and the labor market.

Lower rates bode well for speculative assets like cryptocurrencies. However, a slower pace of interest rate cuts may keep investors wary of cryptocurrencies in the near future, while the higher U.S. terminal rate also bodes ill for the sector.

Crypto largely avoided an overnight rebound on US stock markets.

Bitcoin remains narrow due to lack of catalysts

Despite recent volatility, Bitcoin has largely been stuck in the $50,000 to $65,000 trading range seen since June.

Traders are looking for clearer catalysts to lift cryptocurrency prices, including the launch of options offerings on BlackRock’s spot Bitcoin ETF platform.

Bitcoin has largely lagged stock market gains following the Fed’s September interest rate cut, and was hit difficult last week by increased risk aversion as markets feared a potential escalation of the Israel-Hamas war.

However, one point of support for cryptocurrency prices is the prospect of Donald Trump winning the 2024 presidential election. Betting platform Crypto Polymarket showed Trump leading Vice President Kamala Harris by 53.4% ​​to 45.9%.

In the last campaign, Trump maintained a pro-crypto stance.

Cryptocurrency price today: altcoins muted

Prices of broader cryptocurrencies rose but remained mostly rangebound. The world’s No. 2 cryptocurrency rose 0.9% to $2,450.46.

and increased slightly, while among meme tokens they increased by 1.2%.