This episode of Markets Daily is sponsored by Cracken.

It's Tuesday, July 25th, 2023, and this is Markets Daily from CoinDesk.

George Cloutis here again for your Daily News Roundup.

On today's show, we're talking Bitcoin, the latest headlines, and more.

And just a reminder, CoinDisc is a new source and does not provide investment advice.

Bitcoin has seen better days.

Following its decline below $29,000 for the first time in a month on Monday,

Bitcoin was trading at $29,100 early Tuesday. The bearish price action comes ahead of the Federal

Reserve's expected 0.25% interest rate hike on Wednesday afternoon. The question for the Fed is not

whether it will hike the benchmark borrowing costs by 25

basis points, but whether the increase will mark the end of a tightening cycle that began

16 months ago and was partly responsible for last year's crypto market crash.

The Fed is expected to raise the rate to a 22-year high of 5.25% to 5.5% with Chairman Jerome Powell holding a press

conference half an hour after the Wednesday announcement. A recent Reuters survey of 106 economists

showed that most expect the hike will be the last one for a while. Fed funds futures show

traders also expect the Fed to subsequently hold rates steady until early next year.

Since June's Fed meeting stocks have surged and investors have trimmed expectations of more tightening,

taking note of continued labor market resilience and dwindling inflation,

and have grown more confident of a soft landing for the economy.

Bitcoin has rallied 16%, largely on the back of spot

ETF optimism and partly aided by the quote, Goldilocks economic scenario. This means

suggestions of more rate hikes beyond July may see investors take some risk off the table,

...