The post Crypto Market Slips as FOMC Meeting and FED Interest Rate Decision Loom appeared first on Coinpedia Fintech News
The crucial Federal Open Market Committee meeting is scheduled to be organised on Tuesday and Wednesday. In a recent speech, US Fed Chairman Jerome Powell hinted that the organisation would take a wait-and-see approach on interest rates, citing the pandemonium created in the US economic landscape by the newly introduced economic policies, especially the aggressive tariff policy. Uncertainty looks over US markets. Crypto investors have reacted to market uncertainties. In the last 24 hours, the cryptocurrency market has seen a decrease of 3.1%. Bitcoin has dropped by 1.7% and Ethereum by 2.3%. Let’s dive in for more details!
Bitcoin and Ethereum Drop
Yesterday, the Bitcoin market showed a severe single-day drop of 2.09%. At the time of closing on March 16, the price was at $82,577. 24. In the last 24 hours alone, the BTC market has dropped by 1.9%. Currently, the BTC price stands at 82,888.44 – at least 0.37% above yesterday’s close.
Yesterday, the Ethereum market plummeted from around $1,935.77 to $1,886.92, marking a severe single-day drop of 2.52%. In the last 24 hours alone, the ETH market has experienced a decline of 2.4%. Currently, the ETH price remains at $1,888.69 – slightly above yesterday’s closing price.
Experts believe that the sharp decline in market sentiment over the last weekend was due to economic and regulatory concerns.
US Stock Futures & Federal Reserve’s Impact
In this week’s FOMC meeting, the Fed is less likely to make any changes in interest rates. Right now, the federal funds rate remains within a range of 4.25% to 4.5%.
In February, the US inflation rate dropped from 3% to 2.8%. According to TEForcast, it is expected to drop to 2.5% in March.
US President Donald Trump recently imposed import tariffs on China, Mexico and Canada. He has already announced his intention to expand the scope of his aggressive tariff policy.
Many think that the Fed is unlikely to make any decision on interest rates until the US economy completely absorbs the impact of the aggressive tariff policy.
There is a chance that the tariff policy will push up inflation in the US market.
Uncertainty looms over US markets. Dow Jones, S&P 500 and Nasdaq Composite Futures have declined, signalling cautious investor sentiment.
Crypto Derivatives & Market Trends
The cryptocurrency market has seen a drop of 3.1% in the last 24 hours. During the period, almost all the top-ten cryptos have experienced declines. Bitcoin has dropped by 1.9%, Ethereum by 2.4%, XRP by 1.9%, Solana by 4.6%, and Cardano by 3%.
Reports indicate that leverage remains high in crypto futures markets despite $253 million in liquidations in the past 24 hours.
Funding rates have stabilised at neutral, showing mixed market sentiment.
In conclusion, crypto traders are looking for a catalyst, such as the Fed’s policy decision or an institutional investment signal, to determine the market’s next direction.
