The price of Bitcoin fell 2.5% on Wednesday after the Federal Reserve decided to leave interest rates unchanged, dampening hopes for potential rate cuts in March. The Fed said it needed "greater confidence" that inflation was moving down before cutting rates.

Analyst Tony Sycamore said the Fed's hawkish stance could spell trouble for U.S. stocks and Bitcoin. "Unless earnings reports tomorrow shoot the lights out, expect to see a further pullback in US equities, which will weigh on Bitcoin," he said.

Rate cuts are often seen as bullish for cryptocurrencies, as they make borrowing cheaper and increase risk-on activity. But the Fed reiterated inflation remains high, meaning rate cuts aren't guaranteed.

"The economic outlook is uncertain, and the Fed remains highly attentive to inflation risks," it said.

Sycamore believes Bitcoin will likely continue falling due to deteriorating risk sentiment. He expects a rally toward $45,000 before BTC returns to the mid-$30,000s. After that, its general uptrend should resume, Sycamore says.