Bitcoin's price remained stagnant, hovering around $88,000 as investors showed caution ahead of the Federal Reserve's policy meeting. The largest cryptocurrency has struggled to gain momentum, up only about 1% this year. Market participants are closely watching the Fed's stance on interest rates and inflation, which could impact risk appetite.

The market is awaiting guidance from the Fed's meeting for potential rate cuts and the inflation outlook. Any shift in Jerome Powell's tone could influence crypto trading conditions. Uncertainty surrounding the Fed's moves, coupled with geopolitical concerns, has curbed enthusiasm for riskier assets like Bitcoin.

Japan could see its first crypto ETFs as early as 2028, potentially broadening access to digital assets. The Financial Services Agency plans to add cryptocurrencies to eligible ETF assets. Nomura Holdings and SBI Holdings are among firms poised to launch products.

Most altcoins also saw modest gains during the session. The crypto market's reaction to the upcoming Fed decision will be key. Traders are looking for clues about future monetary policy, which will likely dictate the short-term direction of Bitcoin and the broader digital asset market.