The cryptographic market was little changed to less on Tuesday, with Dogecoin (Doge) and XRP leading decreases between the main chips with losses of just over 3% in the last 24 hours. The Coendesk 20 (CD20) index, a broader cryptographic market measure, fell 2%.
The lack of volatility occurs when Bitcoin merchants (BTC) are largely prepared for the Federal Open Market Committee (FOMC) meeting scheduled for Wednesday, which could establish the tone for monetary policy and influence risk assets, including cryptocurrencies.
The Federal Reserve decision on interest rates is expected to remain unchanged at 4.25% –4.50%, and any comment by President Jerome Powell could influence the feeling of investors. An aggressive posture, pointing out a more strict policy or a slower path for rate cuts, could press Bitcoin and lead to more pronounced losses in Altcoins. On the contrary, an inclination of moccas that suggests a future facility could cause a relief rally.
“A rate cut on Wednesday is still very unlikely since the United States revolves away from the fiscal domain, where government spending fed growth, towards [President Donald] Trump’s impulse for deficit reduction “, QCP Capital merchants shared in a transmission message on Tuesday.” The change returns the burden to monetary policy. While we do not anticipate a surprise cut, any Powell Powell signal could be the catalyst that causes a rising impulse.
“Capital can be turning the impulse shops promoted by Trump such as Nasdaq and Bitcoin and in European and Chinese markets with high performance.
Agne Linge de Wefi pointed out that the wider market volatility remains high, with the cryptographic fear and greed index at the age of 22, indicating “extreme fear”, as investors fight uncertainties around inflation, commercial wars and geopolitical tensions.
“In the United States, the S&P 500 compound and Nasdaq registered their fourth consecutive weekly decreases last week, with Dow Jones falling by 3.1% to record their worst weekly billing in about 24 months. Although the previous week saw an unusual deployment, more uncertainty is advanced during the rest of the month,” said Ling, who scored any header in the macroeconomic.
In Bitget Research, Chief Analyst Ryan Lee said that Bitcoin remains in a narrow range with a movement at $ 75,000 or $ 90,000 alike, depending on how merchants react to the US fee decision. UU.
“Bitcoin’s recent setback causes merchants to see the key support levels between $ 82,000 and $ 85,000. It is a classic consolidation phase after the rally that is healthy, but also a proof of whether the recent impulse has a power of real permanence,” Lee said in an email to Coindesk. “Any unexpected FOMC movement could yield a key to the market.
“If the feeling becomes bassist, we could see that Bitcoin immerses himself around $ 75,000, $ 80,000, although a bullish macro backdrop could send him back to $ 90,000,” he added.
