Bitcoin, XRP, Ethereum Prices Slip. Why Crypto Investors Are Feeling Cautious.

Bitcoin is trading about 8% off the record high it hit last month. (GIUSEPPE CACACE/AFP via Getty Images)

Bitcoin and other cryptocurrencies were sliding on Monday, with digital-asset investors in wait-and-see mode ahead of the Federal Reserve’s policy decision.

The world’s largest token was down 1% to $114,950 over the past 24 hours, according to data from CoinDesk. It’s now trading about 8% off the record high it hit last month.

Created with Highcharts 9.0.1Sources: CoinDesk (BTC, SOL); Kraken (ETH,​XRP)

Created with Highcharts 9.0.1SolanaEthereumXRPBitcoinSept. 12Sept. 15-4-2024681012%

Bitcoin wasn’t the only crypto sliding. Ethereum slid 3.1%, Solana dropped 5.1%, and XRP fell 3.5% over the past 24 hours, according to data from the crypto exchange Kraken.

The selloff is a sign of caution among investors, with the Fed decision coming Wednesday.

The central bank is widely expected to lower interest rates by a quarter of a percentage point, but it could give Bitcoin a boost if it opts for an outsized half-point cut. When borrowing costs fall, the returns on safe investments like bonds and cash become less appealing, making cryptos and other risk-on assets more attractive because of their higher potential yields.

Write to George Glover at george.glover@dowjones.com