The cryptocurrency market was barely changed on Tuesday, while Dogecoin (Dogecoin) (Doge) and XRP The leading among major tokens has dropped in the past 24 hours, with losses just over 3%. Coindesk 20 index (CD20) The measure of the broader crypto market fell by 2%.
The lack of volatility is Bitcoin (BTC) Traders largely supported the Federal Open Market Committee (FOMC) meeting held on Wednesday, which could set the tone for monetary policy and affect risky assets, including cryptocurrencies.
Fed’s decision on interest rates – generally expected to remain unchanged at 4.25%-4.50% – any comments made by Chairman Jerome Powell could impact investor sentiment. Hawkish stance, stricter policies, or avenues to slow down speeds, may put pressure on Bitcoin and lead to more obvious losses in altcoins. Instead, a dirty tilt suggests that future relaxed easing could trigger a relief rally.
“As the United States is far from fiscal dominance, a reduction on Wednesday remains unlikely, and growth in government spending has fueled the push for Trump’s deficit reduction,” QCP Capital traders shared on Tuesday’s broadcast message. “This shift re-burdens monetary policy.
QCP Capital Traders added: “Capital may shift from Trump-driven momentum transactions such as Nasdaq and Bitcoin to Europe and China for a long time.
Wefi’s Agne Linge noted that wider market volatility is still rising, with a cryptocurrency fear and greed index of 22, indicating “extreme fear” – investors struggle to cope with uncertainty over inflation, trade wars and geopolitical tensions.
In the U.S., the S&P 500 and Nasdaq Composites fell for the fourth straight week, with the Dow Jones down 3.1% to record its worst weekly turnover rate, while the unusual reduction in the previous week was uncertain.
In Bitget Research, lead analyst Ryan Lee said that based on traders’ reaction to U.S. interest rate decisions, Bitcoin is still in a tight range and could also increase $75,000 or $90,000.
“Bitcoin’s recent callback has allowed traders to watch key support levels between $82,000 and $85,000,” Lee said in a Coindesk email. “Any unexpected FOMC move could bring the wrench to the market.”
“If sentiment turns bearish, we can see Bitcoin drop to $75,000 to $80,000, although the bullish macro background can make it climb to $90,000,” he added.
