ChainCatcher news, reported by The Block, analysts expect the Federal Reserve to lower interest rates by 25 basis points at Wednesday's Federal Open Market Committee meeting. While lower rates typically boost risk assets like Bitcoin, comments and economic forecasts from the Fed during Wednesday's meeting may dampen expectations for further rate cuts amid ongoing inflation concerns.

Recent U.S. CPI and PPI data have raised worries about potential price pressures next year, especially considering the speculation surrounding the economic policies of U.S. President Donald Trump. Furthermore, although macroeconomic events continue to have an impact, QCP Capital analysts believe that Bitcoin's recent rise is primarily driven by market sentiment.