CoinDesk 20 Index: 3,870.57 -3.12%
Bitcoin (BTC): $105,002.52 -1.79%
Ether (ETH): $3,871.47 -3.01%
S&P 500: 6,050.61 -0.39%
Gold: $2,647.15 +0.02%
Nikkei 225: 39,081.71 -0.72%

Bitcoin is taking a bull breather following its ascent above $108,000 on Tuesday. BTC is trading nearly 3% below the high at just above $105,000. The broader digital asset market has also dipped, with the CoinDesk 20 Index down by over 4%. The crypto market appears to be derisking ahead of today's Fed interest-rate decision. Everyone's buzzing about the likelihood of another rate cut that will supposedly galvanize risk-taking in the economy and financial markets. However, the central bank is expected to signal three rate cuts for 2025, not the four it projected in September, as well as revise growth and inflation forecasts higher.

The NFT market is showing signs of recovery, Galaxy Research said in a new report. NFT volumes had been declining for most of the year, but began to reverse in November following the U.S. elections and the ensuing crypto market rally. Weekly NFT trading volumes exceeded $100 million in early November for the first time since May, and reached $172 million on Dec. 2, Galaxy said. "This resurgence has been primarily driven by increased activity among the top 25 collections by market cap," analyst Gabe Parker wrote, with increased participation across leading marketplaces such as OpenSea, Blur and Magic Eden. Blur and OpenSea were responsible for 60% and 27% respectively of the total volume over the last 30 days, the report noted.

Own The Doge DAO, a collective that holds the original "doge" meme, said it acquired the rights to use pet shiba inu Neiro’s images and was holding a community discussion on which NEIRO token can continue to use the dog’s likeness. Neiro is the shiba inu adopted by the owner of Kabosu, the dog that inspired the “doge” meme, after she passed away in July. “When Atsuko revealed the name of her new adopted dog, Neiro, many tokens were launched in an attempt to capitalize on her name and story,” Own The Doge said on X on Tuesday. The discussion will let the community and outside members comment and find a way forward to use Neiro’s intellectual property before being put into an on-chain proposal voted on by DOG token holders.

Bitcoin is experiencing selling pressure after Tuesday's indecisive price action marked by a Doji candle.

Prices had surged to a record high of over $108,000 on Tuesday but failed to maintain those gains, ending the UTC day little changed. That formed a "doji" candlestick pattern that signifies indecision and potential bullish exhaustion when seen at record highs.

The Federal Reserve will announce its interest-rate decision, dot plot projections and economic forecasts at 2 p.m. ET. Chair Jerome Powell's press conference will be held a half hour later.

The consensus is that the Fed will cut rates by 25 basis points to the 4.25% to 4.5% range, marking a total easing of 100 basis points since September. But the dot plot is expected to show fewer rate cuts for next year. These so-called hawkish expectations are likely fueling the derisking in the crypto market that is looking for reasons to drop.

It's important to note that fewer rate cuts do not necessarily mean tightening; easing is still on the table. This suggests that the path of least resistance for risk assets remains tilted toward the upside

- Omkar Godbole