Bitcoin price today: down to $113.7k with Trump-Xi meeting, Fed rate cut in focus

Investing.com-- Bitcoin fell slightly on Tuesday as a recent rebound paused amid growing caution over upcoming high-level talks between the U.S. and China and a Federal Reserve meeting later this week.

The world’s largest cryptocurrency fell 1.6% to $113,760.2 by 01:47 ET (05:47GMT), seeing some profit-taking after rebounding as far as $116,000 on Monday. 

Fed rate cut, Trump-Xi talks in focus 

Markets turned cautious before the beginning of a Fed meeting on Tuesday, with the central bank widely expected to cut interest rates by at least 25 basis points on Wednesday. 

Bets on a rate cut were furthered by mildly softer-than-expected consumer inflation data released last week, which showed inflation remaining mostly muted. This, coupled with recent signs of a cooling labor market, kept markets largely geared towards more Fed rate cuts in the coming months– a scenario that bodes well for crypto markets.

Focus was also on upcoming talks between U.S. President Donald Trump and Chinese President Xi Jinping, scheduled for this week. The two are expected to build on a framework trade deal between Washington and Beijing, which is aimed at deescalating heightened trade tensions between the world’s largest economies.

The prospects of lower rates and a U.S.-China trade deal were key drivers of crypto’s rebound rally, which helped Bitcoin break out of a $100,000 to $110,000 trading range seen through most of October.

Metaplanet to buy back about $500 mln of shares

Japanese hotelier turned Bitcoin treasury Metaplanet Inc (TYO:3350) said on Tuesday it will buy back up to 13.13% of its shares worth about 75 billion yen ($500 million).

Metaplanet’s shares surged over 6% in Tokyo trade following the announcement, recovering further from a recent six-month low. 

The company said it will fund the buyback through a $500 million debt facility.

Metaplanet is the fourth-largest corporate holder of Bitcoin, with 30,823 coins in its holdings. 

The company ramped up its purchases of the crypto over the past year, with a slew of capital offerings.

But growing doubts over the long-term viability of corporate Bitcoin treasuries battered its shares in the last two months, with Metaplanet’s enterprise value also sinking below the value of its Bitcoin reserves earlier in October.

Crypto price today: ether sinks on corporate selling, altcoins retreat

Broader crypto prices largely retreated in tandem with Bitcoin, although world no.2 crypto Ether led losses.

Ether fell 3.9% to $4,072.0 after treasury firm ETHZilla said it sold about $40 million of Ether from its treasury to fund a share buyback. 

XRP fell 1.1%, while BNB shed 2.6%.

Cardano and Solana fell between 2.5% and 4%, while among meme tokens, Dogecoin shed 4.6% and $TRUMP rose 8.5%.