Bitcoin remained largely stable on Wednesday after a brief rally in the previous session,
as investors remained cautious ahead of the closely watched US Federal Reserve monetary policy decision and new regulatory signals.
The world's largest cryptocurrency was last trading 0.2% higher at $74,207.9 as of 9:27 AM (06:27 GMT).
Bitcoin climbed close to $76,000 in the previous session before losing momentum.
Fed Decision Near; Powell Comments Expected
Market participants are now focused on the Fed's interest rate decision, expected later in the day, with expectations that policymakers will keep interest rates unchanged amid growing uncertainty.
Instead, attention will focus on comments from Federal Reserve Chairman Jerome Powell, particularly regarding the inflation risks associated with the recent surge in oil prices caused by escalating tensions in the Middle East.
Crude oil prices rose above $100 per barrel as the conflict involving Iran continues to disrupt energy flows, raising concerns that sustained price pressure could delay any policy easing and put pressure on risky assets such as cryptocurrencies.
Geopolitical risks remained elevated after Israel reportedly assassinated Iran's security chief, Ali Larijani, while Iran resumed strikes on oil facilities in the UAE, heightening overall market concerns.
The US Producer Price Index (PPI) report for February is also expected on Wednesday, ahead of the Fed's decision, providing a fresh indication of wholesale inflation.
The US Securities and Exchange Commission (SEC) clarifies its cryptocurrency classification framework.
Meanwhile, regulatory changes have provided some support for sentiment.
The US Securities and Exchange Commission (SEC) has issued new guidelines clarifying how cryptocurrencies will be classified, dividing tokens into categories such as digital commodities, stablecoins, and digital securities, with only the latter falling under federal securities laws.
Essentially, the SEC's framework introduces a functional "taxonomy" for digital assets, aimed at determining which tokens are subject to securities laws and which are not.
This is a critical issue for markets, as assets recognized as securities must meet strict registration, disclosure, and investor protection requirements.
Cryptocurrency Today: Altcoins Rise in Range-Based Trading
The world's second-largest cryptocurrency, Ethereum, rose slightly by 0.5% to $2,328.45.
The world's third-largest cryptocurrency, XRP, rose 1% to $1.53.
Solana gained 0.7%, while Cardano jumped 2.5% and Polygon rose 1%.
Among meme tokens, Dogecoin gained 0.8%.