Bitcoin Stays Above $100,000 Despite 3.3% Drop Ahead of US Fed Meeting

The cryptocurrency market is facing significant price fluctuations as traders and investors await the announcement of a decision from the US Federal Open Market Committee (FOMC) regarding interest rates. On Wednesday, Bitcoin (BTC) experienced a notable dip of 3.33 percent on international exchanges, trading at $102,185 (approximately Rs. 88.4 lakh), according to data from CoinMarketCap. On Indian exchanges such as BuyUcoin, Bitcoin saw a smaller drop of under two percent, with its price hovering around $102,006 (roughly Rs. 88.3 lakh).

This drop in Bitcoin prices comes as the market remains on edge ahead of the FOMC’s decision. The CME FedWatch tool, which tracks the likelihood of changes in US interest rates, is currently showing a 99 percent probability that the Federal Reserve will not reduce rates in its upcoming meeting. Given the prevailing uncertainty in the market, traders are advised to remain cautious as volatility is expected to stay elevated.

The uncertainty surrounding interest rates and the broader market environment has contributed to a decline in the prices of other major cryptocurrencies as well. Ethereum (ETH), the second-largest cryptocurrency by market capitalization, also saw a decline in its price. On international exchanges, ETH dropped by 2.80 percent, bringing its price to $3,124 (roughly Rs. 2.70 lakh). On national exchanges such as CoinSwitch and CoinDCX, Ethereum experienced a steeper decline of 3.50 percent, with the price dipping to $3,373 (approximately Rs. 2.92 lakh).

These price fluctuations are a reflection of the broader uncertainty in the global financial markets. The FOMC’s decision on interest rates is a key factor in determining market sentiment, as changes in interest rates can impact investment strategies and influence the appetite for riskier assets like cryptocurrencies. While the CME FedWatch tool suggests a high probability of no rate cut, the market is still grappling with the potential for future rate hikes or other economic policies that could have an impact on the broader market.

As a result, cryptocurrency traders and investors are closely monitoring the situation, with many opting to exercise caution in the face of heightened volatility. The crypto market is known for its rapid price movements, and the uncertainty surrounding macroeconomic factors like interest rates only adds to the unpredictability.

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