Cryptocurrency prices declined during Wednesday's trading session, as investors awaited the release of the Federal Reserve's September meeting minutes later in the day, seeking clues about policymakers' intentions regarding interest rates in the coming period.
The market movements come as Federal Reserve officials continue to focus on combating inflation. Mary Daly, president of the Federal Reserve Bank of San Francisco, said that the need to raise interest rates again will depend largely on whether the drivers of inflation persist or fade away, according to Reuters.
Despite the decline in expectations of an interest rate hike in October, due to some weak economic data, traders are still pricing in an 85% probability of a hike by December.
Cryptocurrencies are typically affected by monetary policy expectations, as higher interest rates or continued monetary tightening increase the appeal of traditional assets and reduce demand for high-risk assets, including cryptocurrencies.
In terms of trading, Bitcoin, the largest cryptocurrency by market capitalization, fell by 1.95%, or $1,672.14, to $83,954.25.
The price of Ethereum fell by 2.75%, or $73.89, to $2614.77.
Ripple's price also fell by 2.21%, or $0.0332, to $1.4692.
