Bitcoin, Ethereum, and Ripple remain stable, while Dogecoin rises amid market focus on Federal Reserve interest rate movements.
Major cryptocurrency prices stabilized on Sunday as investors focused on the upcoming Federal Reserve decision this week regarding interest rates, while Dogecoin rose the most among major currencies.
What happened:
The price of Bitcoin fell by 0.98% in the last 24 hours to reach $90,264.02. It recorded a low of $89,644 during the day.
Key prices at 9:35 PM Eastern Time:
- Bitcoin: $90,264.02 (-0.98%)
- Ethereum: $3,112.05 (+0.27%)
- Solana: $151.42 (+1.12%)
- Dogecoin: $0.1416 (+1.68%)
- Shiba Inu: $0.00001285 (+0.94%)
Why it matters:
Investors widely expect the Federal Reserve to cut interest rates by 25 basis points this week, with the CME FedWatch tool indicating an 87% probability for this cut. However, the focus is on updated economic forecasts and comments from Federal Reserve Chairman Jerome Powell, which could significantly impact sentiment.
Mikhail van de Poppe, a well-known cryptocurrency analyst, said: "It seems we are facing a classic sell-the-news correction after a relatively strong rejection." He added that the level of $92,000 has become "crucial" for resuming the rise towards $95,000-$100,000, warning that a hawkish tone from Powell could temporarily push Bitcoin to the $78,000-$82,000 area before quickly rebounding.
For her part, Lacy Chang, a research analyst at Bitget, stated: "There is moderate downward pressure on Bitcoin and Ethereum as the market remains in a wait-and-see mode."
The market saw liquidations worth $200 million in the last 24 hours, with more than half from long positions being liquidated. Bitcoin's trading volume increased by 15%, while open interest fell by 0.29%. The fear and greed index remains in the "extreme fear" zone.
The global market capitalization of cryptocurrencies increased by 0.93% to $3.09 trillion.
