The Bears Have the Cryptocurrency Market Locked Down. Will FOMC Meeting Change That?

Ahead of the FOMC meeting on Wednesday, the crypto market is looking bearish. Bitcoin (BTC) is down from its all-time high and struggling to make back those losses.

Bitcoin has lost 4.46% since yesterday after a long bullish trend that has seemingly come to a halt. Right alongside that token is Ethereum (ETH), with a 6.36% drop from the day before. Only a week ago, these two coins were doing great, gaining day over day and achieving record levels for the year. Now, they are dropping rapidly.

Solana (SOL) is experiencing one of the biggest drops, down more than 10% for the day. Dogecoin (DOGE) has dropped nearly 6.5% as well, with other major cryptocurrency tokens following suit.

It looks like the crypto market is simply bearish, and that could mostly be the result of what is happening with Bitcoin. We are seeing retracement there as many investors sell off their Bitcoin now that it has set new records for itself. It could be very difficult for the crypto market to recover from this.

What Will the FOMC Meeting Do to the Market?

The next major financial event for the US economy is the FOMC meeting on Wednesday. Expectations are fairly flat for the meeting, with many expecting that interest rates will not be cut for now and inflation will be mentioned as worse than anticipated. The Fed chairman is expected to make remarks about unemployment figures and other relevant data too.

The market should not take a big hit from the meeting, but any more talk of poor inflation rates could negatively impact the market. While inflation is improving broadly, that improvement is happening very slowly and not in line with the hopeful expectations that many economists have put out to the public.

That is going to hold the crypto market back a bit and make it harder to get out of the bearish rut it is in. Expect sluggish improvement over the week as the bulls try to do something with the major crypto coins.

ABOUT THE AUTHOR See More

Timothy St. John

Financial Writer - European & US Desks

Timothy St John is a seasoned financial analyst and writer, catering to the dynamic landscapes of the US and European markets. Boasting over a decade of extensive freelance writing experience, he has made significant contributions to reputable platforms such as Yahoo!Finance, business.com: Expert Business Advice, Tips, and Resources - Business.com, and numerous others. Timothy's expertise lies in in-depth research and comprehensive coverage of stock and cryptocurrency movements, coupled with a keen understanding of the economic factors influencing currency dynamics. Timothy majored in English at East Tennessee State University, and you can find him on LinkedIn.

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