Bitcoin Dominance Surges to Four-Year High Ahead of FOMC Meeting
Bitcoin's dominance in the crypto market has reached a four-year high, surpassing 65%, as traders focus on the leading asset ahead of the Federal Reserve's policy meeting. BTC is currently trading between $94,000 and $95,000, showing a modest increase of 0.4% over the past 24 hours.
Key points:
- The CoinDesk 20 Index fell by 0.7%, influenced by declines in Ethereum (ETH), Sui (SUI), Aptos (APT), and Polygon (POL).
- Traditional markets have seen back-to-back losses with the S&P 500 and Nasdaq down by 0.7%-0.8%.
- Market strategist Joel Kruger notes a period of stagnation as investors await catalysts from traditional markets or the Fed's decisions on interest rates.
- The Fed is expected to maintain current interest rates, but any change in tone from Chair Jerome Powell could affect risk appetite.
Potential Bitcoin Volatility
Analysts predict significant volatility following the FOMC meeting. Vetle Lunde from K33 highlighted that BTC's short-term volatility is at its lowest in 563 days, suggesting a potential for sharp price movements as market conditions stabilize.
He recommends "aggressive spot exposure" for medium and long-term investors, citing historical patterns where low volatility regimes lead to buying opportunities.