Major Cryptocurrencies Continue to Fall Ahead of US Fed Meeting

Resurgent Strength of USD Negatively Affects Crypto Market
  • The Federal Reserve will soonly decide on the interest rate increase. 
  • Fed’s upcoming decision will play a crucial role in the price actions of top cryptocurrencies.

The US central banking system, Federal Reserve, has already started the two-day policy meeting regarding interest rate hikes. In the ongoing meeting, the monetary policy-making body of the Federal Reserve, the Federal Open Market Committee (FOMC) will decide on the next interest rate increase. However, the global cryptocurrency market has again started witnessing an enormous downfall ahead of Fed’s major awaiting decision. 

It is anticipated that the Federal Reserve will hike rates by an additional 75 basis points, bringing them to a range of 3% to 3.25 percent. It is also expecting a 100 bps increase. The probability of a 75-bps hike is 82%, and the probability of a 100-bps hike is 18%, as per the reports. 

Major Coins Witnesses Collapse

Currently, the major cryptocurrencies are going through a significant fall amid the bearish market. The market leader, Bitcoin (BTC) has again fallen by around $19k. At the time of writing, BTC is trading around $19,004.91, with a 24-hour trading volume of $34,668,490,763. Bitcoin has decreased nearly 1.96% in the last 24 hours, as per CMC. 

Current status of major cryptocurrencies (Source: CMC)

Additionally, apart from Bitcoin, top altcoins such as Ethereum (1.54%), Binance Coin (1.05%), Solana (1.40%), Polygon (2.12%), Shiba Inu (2.61%), and Avalanche (1.45%) are also registered a major fall in the last 24 hours. 

The Fed’s decision regarding the interest rate will play a crucial role in the price actions of the leading cryptocurrencies. However, the vast majority of cryptocurrency traders fully anticipate a 75 bps increase. Since it has already been fully priced in, many experts think that a 75 bps increase will trigger a cryptocurrency rise.

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