Bitcoin Tumbles Below $77K as Fed Rate Decision Looms

Bitcoin dipped below $77,000 on Tuesday as the Federal Reserve prepares to announce its interest rate decision on Wednesday. Markets are pricing in a 92.5% chance of a quarter-point hike, which would end a three-year pause in rate increases.

The last time the Fed raised rates, Bitcoin's price remained steady, but that was over three years ago. The cryptocurrency has been range-bound between $60,000 and $80,000 since May, down 12% year-to-date and 32% over the past month.

Crypto analysts are divided on the potential impact of a rate hike. Tom Lee, chairman of Bitmine Immersion Technologies (BMNR), called a hike a 'policy error' as supply-shock inflation fades. He agreed with Moody's Analytics Chief Economist Mark Zandi, who said the Fed 'can wait.'

Michael van de Poppe, founder of MNFund, believes that despite expectations, he does not expect a rate hike and predicts that markets will likely be on the rise regardless.