Cryptocurrency Market Sees Red as Investors Await Fed Decision
The cryptocurrency market is experiencing a downturn, with bitcoin dipping below $67,000 and ether falling 6.1% to $3,452.02. This decline is likely due to investors awaiting the Federal Reserve’s next rate decision, which is expected to be announced on Wednesday.
Federal Reserve building
The market is worried that the Federal Reserve may not reduce interest rates this year, which could have a negative impact on the cryptocurrency market. According to Bartosz Lipinski, CEO of Cube.Exchange, “When equities sell off, other risk assets follow. This feels largely like the market is losing confidence that the Federal Reserve will cut interest rates anytime soon, and greater fears about the impact of high rates over the long-term are beginning to take hold.”
Bitcoin’s decline may have been triggered by a wave of long liquidations, which forces traders to sell their assets at market price to settle their debts. In the past 24 hours, $56 million in long bitcoin liquidations have occurred across centralized exchanges, according to CoinGlass.
Bitcoin price chart
The cryptocurrency market is also experiencing a “malaise” due to the lack of a catalyst to drive prices higher. Despite spot ETH ETFs seemingly being on the verge of coming to the market in the U.S., there has been no real catalyst to drive prices higher.
Cryptocurrency market
In conclusion, the cryptocurrency market is experiencing a downturn due to investors’ uncertainty about the Federal Reserve’s next rate decision. The market is worried about the impact of high interest rates on the long-term health of the cryptocurrency market.
Cryptocurrency investor
