The cryptocurrency market has experienced a significant shift towards a bearish trend as growing uncertainty and investor fear take hold. Several key factors contribute to this downturn, including the U.S. presidential election turmoil, an assassination attempt on former President Donald Trump, and the upcoming Federal Open Market Committee (FOMC) meeting.
As a result, Bitcoin has fallen from its $60,000 mark, Ethereum has dropped below $2,400, and XRP has lost its $0.60 level. The market’s cautious sentiment reflects widespread anxiety over these developments. Major altcoins like Solana (SOL), XRP, and Dogecoin (DOGE) have also contributed to a decrease in the market cap from $2.1 trillion to $2.03 trillion.
Bitcoin’s Volatility
Following recent news, Bitcoin’s price took a notable tumble as traders hit the brakes ahead of this week’s Federal Reserve meeting, where a rate cut is anticipated for the first time since 2020. The CME FedWatch tool indicates a 61% chance of a 50 basis points cut and a 39% chance for a 25 basis points cut, fueling high anticipation.
PlanB noted that miners are still reeling post-halving and require a significant price boost to enhance profitability. Analyst Credible Crypto observed that Bitcoin retraced from the $61,000-$62,000 resistance but is maintaining a position above $58,500, which is crucial for avoiding deeper drops.
Coinglass data reveals a $35 million Bitcoin liquidation spree, with $30 million in longs being wiped out. Bitcoin dipped to a 24-hour low of $58,112 as traders sold off below the 50-SMA. The price has since bounced back from the 0.618 Fibonacci level to the 0.5 Fibonacci level. Market expectations are for Bitcoin to move sideways near $59,000 until the FOMC meeting, with hopes that a 50 basis points rate cut could spark a market rally.
Ethereum’s Struggles
Ethereum’s price has tumbled below $2,300, primarily due to a major whale selling off ETH holdings after eight years of dormancy, coupled with bearish moves from other large holders. Analyst Ali Martinez highlights that Ethereum faces further risks if it breaks below the support range of $2,290 to $2,360, with a potential drop toward $1,800 if this key support fails. Ethereum’s price has dropped 6% in the last 24 hours.
Altcoin Reactions
The declines in Bitcoin and Ethereum have had a ripple effect on altcoins. XRP is currently at $0.572 with a 23.16% drop in 24-hour trading volume. Solana (SOL) is priced at $131.01, down 3.82% with $1.73 billion in trading volume. Dogecoin (DOGE) is at $0.1017, falling 2.84% with $517.94 million in volume. Cardano (ADA) is at $0.0008529, down 2.21% with $34,841 in volume.
The global crypto market cap has decreased by 2.9% to $2.04 trillion. The fear & greed index has dropped from 51 (Neutral) to 39 (Fear), with the market eagerly awaiting the FOMC meeting and Jerome Powell’s speech for further direction.
Looking Ahead: Is a Rebound Possible?
As the market grapples with these developments, many analysts are speculating whether a rebound is possible by the end of the month. The outcome of the FOMC meeting and subsequent policy decisions will likely play a crucial role in determining the market’s direction in the near term.
