Bitcoin, Ethereum Drop, Dogecoin Flat: Analyst Sees 'Crypto Peak Doom' Preceding 'Fed Fireworks' - Bitcoin (BTC/USD), Ethereum (ETH/USD), Dogecoin (DOGE/USD)

Bitcoin, Ethereum Drop, Dogecoin Flat: Analyst Sees ‘Crypto Peak Doom’ Preceding ‘Fed Fireworks’ – Bitcoin (BTC/USD), Ethereum (ETH/USD), Dogecoin (DOGE/USD)

Major currencies fell lower on Tuesday night as the global cryptocurrency market capitalization fell 2.5% to $921.9 billion as of 8:18 p.m. EDT.

Price performance of major coins
Currency 24 hours 7 days Price
Bitcoin USD/BTC -3.15% -6.3% $18,935.15
Ethereal EUR/USD -3.5% -15.7% $1,328.70
doecoin DOGO/USD 0.2% -two% $0.06

Top 24-hour gainers (data via CoinMarketCap)
cryptocurrency 24 hour % change (+/-) Price
XRP (XRP) +6.35% $0.41
Helium (HNT) +5.5% $4.89
Stellar (XLM) +5% $0.12

See also: Best USDC Interest Rates

Because it is important: Bitcoin and Ethereum traded lower before the Federal Open Market Committee (FOMC) meeting scheduled for Wednesday.

On Tuesday, the S&P 500 and Nasdaq closed down 1.1% and 0.95%, respectively, while, at the time of writing, US stock futures were slightly higher.

The probability of a 75 basis point rate hike was 82%, according to the CME FedWatch Tool, a sign that investors can expect an aggressive move from the US central bank at the end of the FOMC meeting.

Screenshot of CME Group’s Fedwatch tool

“The Fed begins its two-day policy meeting and while an expectation of 75 basis points is widely expected, the key message from the Fed Chairman [Jerome Powell] it could be that rates remain elevated for much longer than the market expects,” he said. Edward MoyaSenior Market Analyst at OANDA.

On Bitcoin, Moya said: “Bitcoin’s fate will be determined by the fireworks from this week’s central bank decision, which could help fuel any sell-off to retest summer lows. Peak pessimism is almost here for cryptocurrencies, which are needed before long-term money rolls back in.”

justin bennett tweeted on Tuesday that the total market capitalization chart wasn’t looking the “best” going into the FOMC.

“A recovery would be bullish but this $913B area is resistance for [the total market capitalization] from now on,” said the merchant.

cryptocurrency trader Michael van de Poppe he said on Twitter that it was “impressive” that interest in Bitcoin was “terribly low at this point, whereas a year ago everyone was jumping on each other to get in.”

“The irony of this is that the quiet period is the best period to look for an asset like [Bitcoin]what is now.”

A tweet from the community-driven analytics platform cryptoquantification he noted that it was possible that selling pressure from long-term holders was putting downward pressure on the apex currency.

The CryptoQuant analyst pointed to a metric known as Exchange Inflow Coin Days Destroyed (CDD) to make his case. Higher values ​​of the metric indicate that more long-term holders moved their coins for sale purposes.

Bitcoin Exchange Inflow CDD – Courtesy of CryptoQuant

The analyst said that the metric has spiked recently and a move to the $16,000 level could be “the most likely scenario for Bitcoin in the short term.”

Read next: A Look at Bitcoin, Crypto Market Before the Federal Reserve Interest Rate Decision: What to Watch

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