Tuesday saw a drop in major cryptocurrencies as traders anticipated the Fed’s policy decision and the consumer price inflation data that was scheduled to be released on Wednesday.
At 12:43 p.m. IST, Ethereum was down 3.5% at $3,538 while Bitcoin was down 2.3% at $67,770. In parallel, the value of the world’s cryptocurrency market fell by 2.7% during the course of the previous day, averaging $2.46 trillion.
“The crypto market continued its downward trend over the last 24 hours, marking this week as critical and highly volatile due to the upcoming FOMC meetings and U.S. CPI and PPI announcements,” according to the CoinDCX Research Team.
“Bitcoin has dropped below $68,000 after breaking down from a horizontal wedge pattern,” stated Giottus CEO Vikram Subburaj in the meanwhile. The market’s expectations for a US interest rate cut in September have diminished following Friday’s better-than-expected US jobs report. A carry trade technique, in which institutions buy spot ETFs while shorting its futures to profit from price discrepancies, may have an impact on Bitcoin’s price movements.”
According to CoinMarketCap, the total value of stablecoins is currently $82.35 billion, or 97.24% of the 24-hour volume of the whole cryptocurrency market.
The largest cryptocurrency in the world, Bitcoin, had a decline in market capitalization to $1.333 trillion in the past day. Currently, 54.27% of the market is made up of Bitcoin, according to CoinMarketCap. The volume of BTC increased by 94.13% to $29.5 billion in the past day.
“Bitcoin is currently consolidating around the $68,000 level following recent liquidations,” stated Edul Patel, CEO of Mudrex. Bulls may engage in aggressive purchasing at this point, but bears are trying to drive the price below $68,000. The next Bitcoin support and resistance levels are $67,400 and $68,600, respectively.”
“Technically, the trend is bearish in the lower time frame, but it remains bullish in the higher time frame,” noted the CoinDCX Research Team in the meantime.
