The cryptocurrency market is experiencing significant price fluctuations, as the US Federal Open Market Committee (FOMC) prepares to announce its decision on a revision of interest rates. On Wednesday, Bitcoin’s price saw a 3.33 percent dip on international exchanges, trading at $102,185 (roughly Rs. 88.4 lakh) according to CoinMarketCap. In India, on exchanges like BuyUcoin, BTC faced a price drop of under two percent, trading at $102,006 (roughly Rs. 88.3 lakh).
“Markets remain on edge ahead of the FOMC decision, with the CME FedWatch tool pricing in a 99 percent probability of no rate cut. Given the heightened uncertainty, volatility is expected to remain elevated, and traders are advised to exercise caution,” the CoinSwitch Markets Desk told Gadgets 360.
Ether dropped alongside Bitcoin — on global exchanges, ETH fell by 2.80 percent to trade at $3,124 (roughly Rs. 2.70 lakh). National exchanges like CoinSwitch and CoinDCX showed ETH prices were down by 3.50 percent, bringing its price to $3,373 (roughly Rs. 2.92 lakh).
“Ethereum has seen a nearly seven percent decline in January, diverging from the broader crypto market and Bitcoin’s upward trajectory. Despite this subdued performance, historical data suggests a brighter outlook, as February and March have traditionally been strong months for Ethereum. Analysts are viewing the current dip as part of a larger, bullish narrative for the asset. ETH is facing strong resistance in $3,500 (roughly Rs. 3.03 lakh),” the ZebPay trade desk said in a prepared statement.
The prices of most crypto assets were down on Wednesday, including Solana, Cardano, Dogecoin, Cardano, and Avalanche.
The crypto price tracker by Gadgets 360 also showed Shiba Inu, Polkadot, Bitcoin Cash, and Cronos were cheaper on Wednesday.
The overall crypto market cap dropped by 1.17 percent in the last 24 hours. The valuation of the sector currently stands at $3.47 trillion (roughly Rs. 3,00,40,871 crore), as per CoinMarketCap.
“While inflation has eased, it remains above target, making it likely that the Fed will keep its benchmark rate steady at 4.25 percent -4.50 percent. If the Fed chair takes a hawkish stance, Bitcoin and other assets could see some temporary volatility,” Alankar Saxena, cofounder and CTO of Mudrex told Gadgets 360.
A few cryptocurrencies rose in value on Wednesday, such as Ripple, Tether, Near Protocol, and Leo alongside UniSwap and Monero.
“Dealing with the flux of macroeconomic factors and market sentiment, traders should expect rapid changes in price action as the crypto markets respond to global financial developments,” Avinash Shekhar, Co-Founder and CEO, Pi42 said, warning the investor community to be cautious.
Cryptocurrency is an unregulated digital currency, not a legal tender and subject to market risks. The information provided in the article is not intended to be and does not constitute financial advice, trading advice or any other advice or recommendation of any sort offered or endorsed by NDTV. NDTV shall not be responsible for any loss arising from any investment based on any perceived recommendation, forecast or any other information contained in the article.