“The current correction is a classic case of risk reduction,” analysts described the situation, commenting on the pressure on Bitcoin (BTC) after Tuesday. The leading cryptocurrency lost 2%, trading at $103,750, according to TradingView and CoinDesk data.

On Tuesday, BTC’s price reached a record high of $108,000 but failed to hold that level, closing the day where it started and forming a Doji candle. This pattern often signals market indecision and potential bullish exhaustion at highs.

“The drop in Bitcoin caused even more significant losses among altcoins, though major assets like XRP, SOL, and ETH fell at a rate similar to BTC,” experts added.

The Federal Reserve will announce its rate decision on Wednesday at 2:00 PM ET. Consensus forecasts a 25 basis point cut to a range of 4.25–4.5%, though the “dot plot” is expected to show fewer rate cuts next year.

“The risk of stronger short-term growth and potential inflation increases, for example, due to tariffs and immigration restrictions, could limit rate cuts to three times in 2025,” ING reported, adding that the Fed may revise its inflation and economic growth forecasts.

Despite the current correction, analysts point out that fewer rate cuts do not indicate policy tightening. “Easing remains possible, and the direction for risk assets continues to point upward,” experts emphasized.