Bitcoin has slightly decreased on Wednesday, continuing the dip from the beginning of the week, as traders mostly avoid risks ahead of the Federal Reserve's decision on interest rates and the August 1 deadline for tariff implementation by President Donald Trump.

As of 16:44 Moscow time, Bitcoin has fallen by 0.7% to $117,840, mainly remaining at the same level after reaching record highs above $123,000 in mid-July.

Caution ahead of the Fed's decision and tariffs is holding back Bitcoin
Risk appetite was limited on Wednesday, with markets largely on edge ahead of the conclusion of the Fed meeting later in the day.

It is expected that the central bank will keep interest rates unchanged, despite growing demands from Trump and his allies for rate cuts.

But some analysts believe that the Fed may signal a less hawkish outlook, especially against the backdrop of concerns about the impact of Trump's tariffs and cracks in the labor market.

Nevertheless, uncertainty regarding the Fed's forecast kept traders largely risk-averse, while Bitcoin also showed only limited growth after the signing of the trade agreement between the US and Europe.

Although the trade agreement with the EU represents a certain progress in Trump's revision of trade policy, it still leaves several major world economies facing the threat of high American tariffs starting Friday, August 1. Trump has shown no intention of extending this deadline, which provides for the imposition of tariffs ranging from 15% to 50% for major world economies.

Although interest rates and fees do not directly affect cryptocurrencies, they influence market sentiment, which in turn affects speculative assets.