Cryptocurrency Market Declines Ahead Of Federal Reserve’s Interest Rate Decision
Key cryptocurrencies Bitcoin and Ethereum declined ahead of the Federal Reserve’s interest rate decision, with Bitcoin fluctuating between $82,000 and $85,000, experiencing a 2.21% weekly recovery but an 11% quarterly loss. Ethereum saw a 7% weekly loss, contributing to its 42% quarterly decline. Market analysts predict potential upward movement if specific price levels are maintained, particularly for Bitcoin, while overall market sentiment remains in the ‘Fear’ zone.
On Sunday, key cryptocurrencies, including Bitcoin and Ethereum, experienced notable declines as market participants awaited the Federal Reserve’s imminent interest rate announcement. Bitcoin fluctuated between $82,000 and $85,000 and managed a slight recovery of 2.21% last week, although it posted an overall loss exceeding 11% for the quarter, diverging from its usual 51% average returns.
Ethereum traded within a range of $1,860 to $1,930, registering a more than 7% decrease over the week, with quarterly losses now at 42%. Liquidations reached over $256 million in the last 24 hours, predominantly driven by long positions amounting to $177 million. In addition, Bitcoin’s Open Interest declined by 2.76%, although the Long/Short Ratio revealed a rise in long position traders to 52%, indicating a potential buy-the-dip approach.
The overall cryptocurrency market capitalization fell by 2% to $2.71 trillion. Concurrently, stock futures showed weakness, with the Dow Jones Industrial Average futures dropping 156 points, or 0.37%, as various indices faced weekly declines. This week, market attention pivots toward the Fed’s policy meeting, with expectations set for stable interest rates.
Analyst Ali Martinez remarked that Bitcoin’s stability above $81,400 would signify ongoing bullish momentum, with a potential breakout target of around $84,500 that could yield an 8% increase. Additionally, Michaël van de Poppe expressed optimism for a “strong and green” week should altcoins avoid significant downturns on Monday.
In conclusion, the cryptocurrency market is currently navigating turbulent waters ahead of the Federal Reserve’s interest rate decision. High volatility has led to significant losses for key cryptocurrencies like Bitcoin and Ethereum, as traders remain hopeful for a positive outcome. Analysts highlight important price levels that could dictate the market direction in the upcoming week, reinforcing the importance of monitoring altcoin performance closely.
Original Source: in.benzinga.com
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