Bitcoin Slips Below $28K Ahead of This Week’s FOMC Meeting: Market Watch

Bitcoin’s value has fallen below $28k as investors nervously await the upcoming Federal Open Market Committee meeting. The cryptocurrency, which had seen a sharp rise in its value over the past year, has been experiencing a downturn amid increasing regulatory scrutiny and concerns over its environmental impact. With the FOMC meeting set to take place this week, investors are looking for clues as to how the US Federal Reserve plans to address inflation, which could have a major impact on the cryptocurrency market. This market watch highlights the current state of Bitcoin’s value and what investors can expect in the coming days.

Bitcoin experiences a slight setback before FOMC meeting

Bitcoin performance since the onset of banking issues in the United States and spreading to Europe has been amazing. Within a week, the cryptocurrency skyrocketed from $20,000 to $28,500 and reached a 9-month high. Bitcoin’s Fear and Greed index also spiked to new record highs. However, BTC started to retrace after attaining the $28,500 high and dipped to $27,500 earlier today.

Investors are actively monitoring the US Federal Reserve for signs of a change in the current monetary strategy at the upcoming FOMC meeting scheduled for March 22. Considering the ongoing banking crisis, the central bank may hold off from further hiking the interest rates.

Many prominent billionaires, including Elon Musk and Bill Ackman, urge the Federal Reserve to decrease its rates by up to half a point. There are expectations that the FOMC meeting may be the trigger for a significant price swing in the crypto market.

Altcoins suffer bigger losses

While Bitcoin experienced a slight setback, altcoins have taken a bigger hit. DOT, MATIC, SOL, and several others have dumped by up to 7-8% in just a day. Ethereum dropped by another 2.3%, resulting in further distance from the $1,800 mark. Binance Coin declined 1.5%, pushing it back to $330.

The mid-cap alts experienced massive losses, with CRO, ICP, GRT, APE, VET, FIL, APT, and others falling by as much as 8% in a single day. As a result, the overall crypto market cap has declined by just over $30 billion within the day and is currently valued at $1.150 trillion.

The current slump in altcoins could be attributed to market manipulation, as the whales of the crypto world usually take advantage of irrational newbie traders to make significant profits. Nonetheless, the market is expected to experience a rebound once the FOMC meeting is over.

In conclusion, investors are eagerly awaiting the outcome of the upcoming FOMC meeting and its impact on the crypto market. Despite the current slump, the crypto market is expected to rebound in the coming days.

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