Bitcoin's rally faces key hurdle with Wednesday's Fed meeting

Hot PPI inflation data in the morning and hawkish remarks by Powell in the afternoon would be the most damaging combination for risk assets, including crypto, Bitfinex analysts said. What to know : Bitcoin pulled back to around $74,000 Tuesday, failing to hold an overnight gain to the $76,000 area. While no one expects the Fed to move rates at its Wednesday meeting, the bank's and Chairman Jerome Powell's tone regarding the inflation outlook could prove a catalyst. A hawkish tone alongside hot PPI inflation data could weigh on equities and crypto, but Powell's signal that the Fed is treating rising oil prices as a temporary shock could extend the crypto rally, analysts said.