As traders adopted a risk-off attitude before the Federal Reserve’s interest rate decision this week, BTC fell to as low as $21,400 on Monday during the Asian Market session after just staying over $22,800 on Sunday.
The price reached a one-month high of $24,300 in the middle of last week, but that positive momentum was drained by the weekend. A 2.81 percent loss in market capitalization in 24 hours has brought the value of the world’s most valuable cryptocurrency, BTC, to $21,831 as of this writing.
Ethereum, the second-largest cryptocurrency in terms of market capitalization, has also fallen over five percent to trade at $1,513. As of the start of this week’s trading, XRP (XRP), Cardano (ADA), Solana (SOL), and Dogecoin (DOGE) all had their value fall by more than 5% on CoinMarketCap, according to their respective values.
A 3.60 percent drop in the last day has brought the crypto market size to $1.01 trillion. There is still a fear and greed index that shows investor views about issues that might possibly influence cryptocurrencies, even if the index has improved in the last 30 days.
This week, the US central bank is anticipated to raise interest rates by at least 75 basis points in response to the soaring inflationary pressures in the Eurozone.
Expect to hear a statement and a news conference from Fed Chair Jeremy Powell on Wednesday from the US central bank’s Federal Open Markets Committee (FOMC). The Fed’s rate rise and other forward-looking initiatives will allow investors to judge whether the rate hike will further depress financial markets or if it will be a major cause of a worldwide recession.
Since June’s meeting, the markets haven’t recovered, and investors are still concerned about this week’s FOMC statement.
Inflation has continued to rise, and the US labor market has remained robust, according to recent data.” No matter how hard the fed pushes, something will eventually break.” Tedtalksmacro published an article for the site.
BTC’s fundamentals have improved in recent weeks, but analysts warn that the price might be rocked in the near term, with its most significant support of $22,000 at danger of being wiped out. As of this writing, “Price Predictions” has predicted that Bitcoin would decline to a minimum price of $21,420 in July, with an average price of $23,628.
Crypto analytics site Santiment reports that Ethereum’s mood has once again dropped into Super negative area, suggesting that prices may continue to tumble before the FOMC meeting.