The majority of the cryptocurrency market is now trading in the negative territory for the week, which is mostly attributable to the US Federal Reserve Bank‘s impending announcement of a rate rise.
During the two-day meeting that finishes on Wednesday, Fed officials are anticipated to announce a third consecutive 75-basis-point hike to their benchmark policy rate.
Investors in both the regular shares market and the cryptocurrency sector are preparing for the effects of the news. This is particularly true given that August’s higher-than-expected inflation numbers (an 8.3% YoY increase in the consumer price index, or CPI) have increased scepticism over the Fed’s rate move.
All of the top 10 cryptocurrencies by market size have had price declines of six to eleven percent during the past day, according to statistics from cryptocurrency pricing data aggregator CryptoRank. Leading cryptocurrency Bitcoin (BTC) lost almost 8% of its value to trade at about $18,400.
Similar to this, the second-largest cryptocurrency, Ethereum (ETH), lost 11% on the day and is now trading at about $1,290. The price of ETH is currently down 26.1% from the one-month high of over $1,800 it attained in the week prior to the Merge.
According to statistics available at the time of writing, BNB, XRP, ADA, SOL, and DOGE have all decreased on the day by roughly 7%, 11%, 10%, 8%, and 8.5%, respectively.
Analysts still believe that Bitcoin is developing a bottom despite the choppy market behavior. The pioneer cryptocurrency has reached a “bottom phase,” according to DrProfitCrypto, a pseudonymous expert who has over 35,000 Twitter followers. He expects the price will stay constant between $18,000 and $25,000 until March 2023.
The analyst does add the qualification that this price bottom would only hold if the Fed made the already anticipated 75 basis point rate rise announcement. A 100bps increase announcement will cause the market to lose more blood.
https://twitter.com/DrProfitCrypto/status/1571452624892993538
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