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The price of Bitcoin, the leading cryptocurrency, dropped to an intraday low of $103,353 earlier today.
It is currently trading at $103,735, down 2.7%. This comes after it soared to a new record high of $108,135 on Tuesday.
The cryptocurrency is seeing increasing volatility ahead of the Federal Reserve's rate hike.
Polymarket bettors see a 97% chance of the Fed implementing a 25-basis-point rate cut. Hence, a potential decision to keep rates unchanged will likely send shockwaves across the markets, causing a significant Bitcoin price correction.
Earlier today, prominent trader Josh Olszewicz opined that $100,000 would be the key level to defend for bulls. According to the chartist, Bitcoin's daily close was rather underwhelming following the new record peak. He believes that the largest cryptocurrency is now in risk-off mode ahead of the Fed's rate decision and Jerome Powell's speech.
However, the trader has said that Bitcoin is unlikely to collapse all the way to the $86,000 level as of now.
Bitcoin is struggling to move higher despite impressive flows recorded by US-based Bitcoin ETFs. On Tuesday, they managed to attract $733 million worth of inflows.