What happened?
Bitcoin pulled back about 1.1% to roughly $112,806 as traders trimmed risk ahead of the Fed’s policy decision, cooling a recent crypto rebound. At the same time, Asian equities rose on AI optimism, with Japan’s Nikkei and Korea’s Kospi hitting highs. Markets are now focused on the Fed meeting and whether signals about rate cuts or balance-sheet runoff will change liquidity expectations.
Who does this affect?
Crypto traders and institutional desks feel the immediate impact as changes in rates and liquidity can move bitcoin and ether sharply. Tech and growth stock investors are also exposed since big-cap earnings and AI news are driving regional equity sentiment. FX and bond markets matter too, because a dovish Fed can weaken the dollar and push capital into riskier assets across Asia and globally.
Why does this matter?
An expected 25-basis-point Fed cut could inject fresh liquidity and boost risk appetite, potentially sparking short-term rallies in crypto and equities. If the Fed signals slower balance-sheet runoff, that would further ease market liquidity and encourage flows into higher-yielding, risk-on assets. The result could be dollar weakness, stronger Asian equities and renewed inflows into major cryptocurrencies and altcoins, reshaping market positioning.