In the last 24 hours, Bitcoin exhibited remarkable stability in the crypto market. However, the Federal Reserve’s decision to pause rate hikes for the second time this year tells a different story. Meanwhile, leading cryptocurrencies like Ethereum, BNB, XRP, and Wrapped Bitcoin experienced marginal losses.
Dogecoin saw nearly 1% gains, while Solana also followed suit with a 0.7% increase, currently trading above $20. In contrast, yesterday’s leading gainer, Toncoin, faced a 6.5% decrease, along with Litecoin registering a 3.14% loss. India’s crypto, Polygon, mostly maintained its position.
Federal Reserve’s Rate Decision: Crypto Markets Anticipate Steadiness in Bitcoin
As the Federal Reserve announces its rate decision, crypto traders foresee little deviation, expecting borrowing costs to remain steady between 5.25% to 5.5%. This projection aligns with an ongoing period of low volatility in both crypto patterns and traditional markets.
The Fed’s future decisions regarding interest rates are contingent on evolving inflation and employment data. The central bank will probably echo this sentiment in its Wednesday announcement. Potentially, that could come off as a strong influence on markets’ pricing of renewed liquidity easing.
Experts believe the Fed’s strategy is to navigate the FOMC meeting by keeping rates unchanged while signalling a commitment to elevated rates in the face of economic data.
Will Crypto Recover? Market Stability Post-Fed Decision
Options expiring this Friday indicate that rate decisions might not significantly impact Bitcoin. Traders expect BTC’s movement to go through limits at 2.8%, reflecting the sentiment of a relatively stable market post-Fed decision.
In anticipation of the Fed’s decision, the crypto market capitalization experienced an overnight decrease, potentially creating opportunities for crypto arbitrage. While the Fed’s pause was expected, concerns persist that the central bank might maintain high-interest rates to combat inflation, influencing the Dollar Index, which saw a 0.19% decrease.
This week has been marked by positive trends in the crypto bear markets, with only 11 of the top 100 cryptocurrencies showing a loss of 1% or more. However, the overall market capitalization of cryptocurrencies experienced a slight dip from $1.08 trillion to $1.07 trillion.
PayPal’s PYUSD Launches on Venmo, Expanding Crypto Reach
In a significant move, PayPal’s crypto stablecoin PYUSD has been integrated into the popular payments app Venmo. This development empowers over 75 million users on the platform to directly send and receive PYUSD, showcasing another stride in the global expansion of cryptocurrencies.
The crypto market, often viewed as a barometer of economic sentiment, appears poised to adapt to the evolving economic landscape shaped by central banks’ policies and broader financial market trends.
