📉 Why is the crypto market down today?
The crypto market is down today, July 29, with some of the most popular meme coins like Fartcoin, Bonk, and Dogwifhat falling by double digits.
Bitcoin (#BTC ) price was little changed at $118,000 as most altcoins retreated. Dogwifhat (#WIF ), and Bonk (#BONK ), three popular Solana meme coins tumbled by over 13%, while Pudgy Penguins, Pepe, and Avalanche fell by over 8%.
🔸 Crypto market is down as Bitcoin price rally fades
The main reason why the crypto market is down today is that Bitcoin has remained in a tight range this week. It has stayed at $118,000 for over a week as the recent bull run faded.
Bitcoin’s price action normally drives the broader crypto market. When it rises, most altcoins jump, and when it drops or consolidates, many tokens crash.
Fortunately, there are signs that Bitcoin’s consolidation is bullish, as it is slowly forming the popular bullish pennant pattern. This pattern consists of a vertical line and a symmetrical triangle, often leading to more gains over time.
Therefore, it is likely to have a bullish breakout, as the two lines of the triangle pattern are converging. This, in turn, could lead to a broader crypto rally.
🔸 Crypto crashed before FOMC decision and macro data
The crypto market is going down because of the upcoming Federal Reserve interest rate decision scheduled on Wednesday.
Economists expect the bank to leave interest rates unchanged between 4.25% and 4.50%. As such, the focus will be on the upcoming dot plot, which will provide more details on when interest rate cuts are expected to begin.
The CME Fed Futurestool estimates that the Fed cuts will start in the next meeting in September. A more dovish tilt will be bullish for Bitcoin and other altcoins.
Furthermore, the crypto market is awaiting key macroeconomic data this week. The US will publish the first estimate of GDP data on Wednesday, personal consumption expenditure on Thursday, and nonfarm payrolls on Friday. It is common for the stock and crypto markets to pull back before major macro events.
