Bitcoin has dropped to $104K as global markets brace for the Federal Reserve's upcoming decision and key EU/UK inflation data. After peaking at $106K earlier in the week, BTC retreated 1.8% as investor sentiment turned cautious.

Analysts point to persistent inflation concerns, with EU inflation hovering at 3.2% and UK inflation at 3.8%, putting pressure on central banks to maintain a hawkish stance. The Fed is expected to keep rates steady but could signal future tightening if inflation doesn’t cool. This uncertainty has weighed on risk assets like crypto.

Ethereum mirrored Bitcoin’s movement, sliding 2.1% to $5,200, while total crypto market cap dipped by 1.5% to $2.4T. Despite the pullback, some traders view this as a healthy correction, with BTC still up over 15% this month.

As macroeconomic developments unfold, investors remain vigilant for clues on inflation, rates, and their potential impact on crypto markets. Show Less