DOGE and XRP Fall Over 3% as Bitcoin Traders Await Fed Meeting
The crypto market showed minimal changes on Tuesday. Major tokens like DOGE and XRP dropped over 3% in the last 24 hours, while the CoinDesk 20 Index fell by 2%.
Market stability is attributed to traders awaiting the Federal Open Market Committee (FOMC) meeting on Wednesday, which may influence monetary policy and risk assets, including cryptocurrencies. The Federal Reserve is expected to keep interest rates unchanged at 4.25%-4.50%. Comments from Chair Jerome Powell could impact investor sentiment.
- A hawkish stance could pressure bitcoin and altcoins.
- A dovish signal might trigger a relief rally.
Traders from QCP Capital noted that a rate cut is unlikely due to a shift in fiscal policies. They indicated that any dovish signals from Powell could lead to positive market momentum. Additionally, capital may be moving away from U.S. markets into European and Chinese markets as crypto prices lag behind global liquidity changes.
Market volatility remains high, with the crypto fear and greed index at 22, indicating "extreme fear." Concerns about inflation, trade wars, and geopolitical tensions continue to affect investor sentiment.
In the U.S., major indices faced declines, with the S&P 500 and Nasdaq Composite experiencing their fourth consecutive weekly drop. Analysts suggest macroeconomic challenges could further impact bitcoin prices.
According to Ryan Lee from Bitget Research, bitcoin is trading within a tight range. A move toward $75,000 or $90,000 is equally possible, depending on reactions to the U.S. rate decision. Key support levels are between $82,000 and $85,000. A bearish sentiment could push bitcoin towards $75,000-$80,000, while a favorable macro backdrop might drive it back to $90,000.