Bitcoin price trades around $38,000 ahead of Fed decision
Bitcoin is down more than 18% year-to-date
Okcoin CEO Hong Fang argues bitcoin has a strong investment value as inflation risks continue in the market.
Bitcoin is holding around $38,000 ahead of the Federal Reserve's decision on interest rates.
The cryptocurrency gave up 2% on Tuesday and has traded lower in four of the past five days.
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Entering Wednesday, bitcoin is down 1% for the week and more than 18% year-to-date.
Bitcoin and other cryptocurrencies have had a rough week ahead of what is expected to be a half-point interest rate hike by the Federal Reserve.
Ether was trading around $2,800, off for a similar amount over the same period.
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This past year, tighter monetary policy has impacted both stocks and cryptocurrencies.
A representation of the virtual cryptocurrency Bitcoin. REUTERS/Edgar Su (REUTERS/Edgar Su / Reuters Photos)
The Federal Reserve is expected to announce the second of several anticipated increases this year as the central bank seeks to combat soaring inflation, which is at a high not seen in four decades.
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Jerome Powell, chairman of the U.S. Federal Reserve, speaks in the Eisenhower Executive Office Building in Washington, D.C., U.S., on Monday, Nov. 22, 2021. (Samuel Corum/Bloomberg via Getty Images / Getty Images)
Chair of the Federal Reserve Jerome Powell confirmed last month that central bank officials are likely to raise interest rates in May, and subsequent months.