Down by 3.38% in the last 24 hours, Bitcoin is falling and on shaky ground as the broader crypto market awaits the Fed’s decision. There seems to be anxiety ahead of the expected rate increase on Wednesday. The trend of losses continues as the global crypto market hasn’t been able to regain its momentum from last week.
Bitcoin is currently trading at $21,172, while Ethereum down by 6.20% in the last 24 hours is changing hands at $1,430. The altcoins are splashed in red. Polygon (MATIC) is the biggest loser, it lost 8.74% in the last 24 hours. Shiba Inu and Avalanche are down by 7.40%, Solana 6.41%, Polkadot lost 5.64% and Cardano is down by 4.55%. Data shows that the market hasn’t been able to revive value as the regression didn’t let the altcoins regain value. If this continues, there would be a steep decline in the overall market value.
Meanwhile, traders expect the Feds to raise interest rates by 75 basis points, with a small likelihood of a 100 basis point move. Reports show that Bitcoin moves with risk assets, and closely follows the sentiment on Wall Street. The popular cryptocurrency’s renewed weakness indicates that the Fed is likely to stick to its path of aggressive tightening.
Michael Kramer, the founder of Mott Capital Management, highlighted that the market has convinced itself that the Fed is close to pivoting, caving in, and going back to its old ways of supporting asset prices. He expects the meeting to change the market’s mind on how serious the Fed is regarding its battle against inflation. Kramer says the Fed doesn’t see the economy as weak or heading for a recession.