Bitcoin traded close to its one-month high as the euphoria from the US Federal Reserve's rate cut decision faded.
The Fed's unexpected 50 basis points interest rate cut has been seen as positive for the crypto market, with analysts anticipating increased market activity.
Central bank interest rate decisions impact liquidity and investor behavior, affecting the flow of capital into cryptocurrencies.
Bitcoin's options contracts showed a dip in volatility, suggesting that traders are not expecting significant price changes in the near future.