- Bitcoin and other cryptos slip post the Federal Reserve’s monetary policy announcement.
- Market experts anticipate a continuation of range-bound trading for digital assets.
- The upcoming decisions about Bitcoin ETFs and next year’s halving event may serve as potential market catalysts.
Bitcoin’s recent dip after the Federal Reserve’s decision, and the anticipation for a continued sideways movement for digital assets, paints a subdued picture for crypto enthusiasts in the near future.
Bitcoin’s Reaction to Federal Reserve’s Monetary Decision
The cryptocurrency behemoth, Bitcoin, experienced a 1% retreat over the last 24 hours, settling at approximately $26,850. This decline followed a peak of near $27,300 on Wednesday, prompted by the Federal Reserve’s choice to maintain interest rates. Consequently, Bitcoin once again hovers around the $26,000 mark, a familiar territory it has been stagnating in for over a month. Factors like historically low volatility and trading volumes are attributed to the present crypto market lull.
Experts Weigh in on Future Crypto Movements
Markus Levin, co-founder of the blockchain network XYO, forecasts more of the same for Bitcoin and the wider market. “We’ll likely continue to see a gradual accumulation, with dips being bought up and rallies being short-lived,” Levin opined. Just like the major stock indices such as the Dow Jones Industrial Average and S&P 500, cryptocurrencies echoed the sentiments of the Fed’s recent move. However, the market reaction was comparatively subdued, largely because the decision to withhold rate hikes was anticipated.
The Influence of Rate Outlooks and Future Catalysts
The rate outlook will persist as a significant influence for Bitcoin. An increased return on risk-free cash or Treasuries means fewer incentives for investors to dive into riskier ventures such as cryptos. It’s noteworthy that the Fed’s subsequent monetary policy review is slated for November. Meanwhile, Markus Levin suggests the need for a new catalyst to witness any significant upswings in the broader digital asset domain. Factors like the approval of proposed Bitcoin ETFs by the Securities and Exchange Commission or the Bitcoin halving event next year may trigger a market upheaval.
Performance of Other Cryptocurrencies
Bitcoin wasn’t the sole digital asset to experience this downturn. Ether, the second-largest crypto, fell by 1.5% to stand at $1,610. Other smaller tokens or altcoins also faced the brunt with Cardano and Polygon decreasing by 2%. Memecoins didn’t fare any differently, with Dogecoin and Shiba Inu both losing 1%.
Conclusion
The current state of the cryptocurrency market underlines a cautious and watchful phase for investors. With key decisions from financial regulatory bodies pending and potential market-changing events like the Bitcoin halving on the horizon, the crypto landscape may soon witness a turning point. For now, market participants might need to buckle up for more of the ongoing range-bound action.
