Cryptocurrency Market Dips Ahead of Federal Reserve’s Interest Rate Decision
Bitcoin, Ethereum, and Dogecoin fell as investors prepare for the Federal Reserve’s interest rate decision. Bitcoin fluctuated between $85,000 and $82,000, while Ethereum traded between $1,860 and $1,930. Significant market liquidations occurred, with Bitcoin’s Open Interest dropping. Analysts express cautious optimism about potential price rebounds.
Recently, notable cryptocurrencies such as Bitcoin, Ethereum, and Dogecoin experienced declines as traders anticipate the Federal Reserve’s forthcoming interest rate decision. Bitcoin fluctuated between $85,000 and $82,000, ultimately exhibiting a modest increase of 2.21% last week. Despite this recovery, it registered an over 11% loss in the first quarter, contrasting sharply with its historical average return of 51%.
Ethereum displayed similar volatility, trading between $1,860 and $1,930, while suffering a weekly decline exceeding 7%, resulting in 42% losses for the quarter. During the past 24 hours, the market witnessed liquidations exceeding $256 million, predominantly from long positions. Specifically, Bitcoin’s Open Interest decreased by 2.76%, while the Long/Short Ratio indicated a rise in long positions among traders to 52%. This reflects a tendency to purchase during dips despite prevailing market fear, as indicated by the Crypto Fear and Greed Index.
As the global cryptocurrency market capitalization fell by 2% to $2.71 trillion, stock market futures also declined on Sunday evening, with notable drops in the Dow Jones, S&P 500, and Nasdaq futures. The impending Federal Reserve policy meeting is crucial, with expectations leaning toward unchanged interest rates.
Analyst Ali Martinez has highlighted the significance of Bitcoin maintaining a price level above $81,400, which is deemed pivotal for its upward trajectory. He also pointed out a potential ascending triangle pattern indicating possible resistance at approximately $84,500, where a close could signal an 8% increase. Michaël van de Poppe forecasts a “strong and green” week ahead, contingent upon whether Monday does not witness an altcoin sell-off.
In summary, the cryptocurrency market experienced declines ahead of the Federal Reserve’s interest rate decision, particularly affecting Bitcoin and Ethereum. Despite these challenges, there are signs of optimism among traders, with some anticipating a rebound if key price levels for Bitcoin hold. Analysts remain watchful for upcoming market movements, particularly the response following the Fed’s meeting.
Original Source: www.benzinga.com
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