Bitcoin Dips Below $23K Before Fed Meeting: Markets Crypto Update

Crypto Markets Today

• Bitcoin dips below $23K ahead of the Fed’s meeting.
• Equities close lower as traders await the Federal Reserve’s decision on interest rates Wednesday.
• LayerZero co-founder denies accusations from a competitor that it covered up a critical „backdoor“ vulnerability in its code.

Bitcoin Price Analysis

The largest cryptocurrency by market value, Bitcoin (BTC), was recently trading at about $22,700, down more than 4% over the past 24 hours and well off its high Sunday near $24,000. Bitcoin-related funds dominated last week’s digital-asset investment products inflows, accounting for almost all of the $117 million coming in.

Equities Market Performance

Equities closed lower as traders awaited the Federal Reserve’s decision on interest rates Wednesday and studied a flurry of fourth-quarter earnings reports from big techs including Apple and Meta. The tech-heavy Nasdaq Composite closed down 1.9%, while the S&P 500 and Dow Jones Industrial Average (DJIA) fell 1.3% and 0.7%, respectively.

Critical „Backdoor“ Vulnerability

A co-founder of LayerZero, which provides services to help blockchains bridge digital assets between each other, is denying accusations from a competitor that it covered up the existence of a critical „backdoor“ vulnerability in its code. James Prestwich, founder of the cross-chain bridging service Nomad, alleged in a blog post that LayerZero can bypass security controls to pass data between blockchains without anyone’s permission.


As traders wait for direction on interest rates from Wednesday’s Federal Reserve meeting and scrutinize major tech companies‘ fourth quarter earnings reports, crypto markets remain volatile with BTC dipping below $23K ahead of the announcement while equities markets close lower overall. Furthermore, LayerZero faces allegations that it has been concealing an undisclosed capability which can compromise system function without users‘ knowledge or consent—accusations which have been denied by one of its founders thus far.