Major coins fell lower Tuesday night as the global cryptocurrency market cap fell 2.5% to $921.9 billion at 8:18 p.m. EDT.
|Coin||24 hours||7 day||Price|
|cryptocurrency||24-hour % change (+/-)||Price|
|Zodiac sign (XLM)||+5%||$0.12|
Also see: Best USDC Interest Rates
Why it matters: Bitcoin and Ethereum Traded Lower Prior to 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 US stock futures were marginally higher at the time of writing.
The probability of a 75 basis point rate hike was 82%, according to the CME FedWatch Tool – a signal 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 is entering its two-day policy meeting and while it is widely expected that 75 basis points [Jerome Powell] could be that rates will remain high for much longer than what the market expects,” said Edward Moyaa senior market analyst at OANDA.
Speaking of Bitcoin, Moya said, “Bitcoin’s fate will be determined by this week’s central bank fireworks, which could help fuel any sell-offs to retest the summer lows. Peak pessimism is almost here for crypto, which is needed before money back in the long run.
Justin Bennett tweeted Tuesday that the total market cap chart didn’t have the “best look” going into the FOMC.
“A chargeback would be bullish, but this $913 billion area is resistance for” [the total market capitalization] from now on,” said the trader.
— Justin Bennett (@JustinBennettFX) September 20, 2022
Cryptocurrency Trader Michael van de Poppe said on Twitter that it was “impressive” that interest in Bitcoin right now was “terribly low, while a year ago everyone was hopping all over each other to get in.”
“The irony of this is that the quiet period is the best time to look for an asset like [Bitcoin]that is now.”
Impressive that the interest in #Bitcoin is terribly low right now, while a year ago everyone was hopping over each other to get in.
The irony of this is that the quiet period is the best time to look for an asset like #Bitcoinwhat is now.
— Michaël van de Poppe (@CryptoMichNL) September 20, 2022
A tweet from the community-driven analytics platform CryptoQuant noted that it was possible that selling pressure from long-term holders was exerting downward pressure on the top coin.
The CryptoQuant analyst pointed to a metric known as Exchange Inflow Coin Days Destroyed (CDD) to make their case. Higher values of the statistic indicate that more long-term holders have moved their coins for selling purposes.
Bitcoin Exchange Inflow CDD — Courtesy CryptoQuant
The analyst said the stat has risen recently and a move to the $16,000 level could be “the most likely near-term scenario for Bitcoin.”
Read next: A Look at Bitcoin, Crypto Market Ahead of the Fed’s Rate Decision: What to Watch?
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