Bitcoin struggles to exceed 2017 bull market peak as traders await Fed rate decision

Major cryptocurrencies such as Bitcoin (BTC-USD) and ethereum (ETH-USD) fared better than the broader stock market in early Tuesday afternoon trading as market participants brace for another likely aggressive interest-rate increase by the Federal Reserve's policymaking arm.Bitcoin (BTC-USD), which has been viewed as a gauge for risk tolerance and sentiment, inched down 0.4% to $19.12K at 12:21 p.m. ET. That's around 500 points below the bull market top in December 2017. Ether (ETH-USD), meanwhile, advanced 1.2% to $1.36K. Overall, the global crypto market cap increased 0.3% to $931.6B over the past 24 hours, according to CoinMarketCap data. By comparison, equities turned lower, with both the Dow Jones and S&P 500 down 0.8% and the tech-heavy Nasdaq -0.3% as risk-off appetite deepens. SA contributor Clem Chambers showed two charts that signal bitcoin "is in trouble," adding that the odds of the token seeing $15K in 2022 is high. As the federal Open Market Committee kicks off its two-day monetary policy meeting Tuesday, traders are pricing in an 82% chance that the fed funds rate will be lifted by 75 basis points to 3.00%-3.25%, compared with an 18% probability of a more aggressive, 100-bp rate hike in the wake of August's hotter-than-expected inflation print, according to CME's FedWatch tool. In turn, the two-year Treasury note yield (US2Y), which closely tracks Fed policy, is closing in on 4% for the first time since 2007,...