Fed Chair Powell indicated on Monday the U.S. central bank would likely stick to quarter-percentage-point cuts henceforth after new data boosted confidence in economic growth and consumer spending.
Investors are also keeping an eye on rising geopolitical tensions after Israel’s ground invasion of Lebanon appeared to be getting underway early on Tuesday.
Crypto Tracker
As of 1:07 pm IST, Bitcoin had slipped 0.9% to $63,935, while Ethereum rose 0.3% to $2,644. Meanwhile, The global cryptocurrency market cap fell by 0.91% to approximately $2.25 trillion in the past 24 hours.“Profit-taking and uncertainty surrounding comments made by the Federal Reserve on interest rates are attributed to the recent sell-off,” said Shivam Thakral, CEO of BuyUcoin.
Avinash Shekhar, Co-Founder and CEO of Pi42, commented on the market’s bearish trend, stating, “Bitcoin dipped to $63,500, and several altcoins fell more than 3%. This trend may be short-term, but the market remains highly volatile as the U.S. elections approach.”He also highlighted that Powell’s remarks on a commitment to lower interest rates have restored confidence, suggesting, “Minor corrections are expected, and altcoins, particularly Ethereum, may see growth. If Ethereum consolidates above $2,700, it could rise to $2,900.”Among altcoins, Solana (-0.3%), XRP (-3.6%), Dogecoin (-3.5%), Cardano (-1.8%), Shiba Inu (-1%), and Chainlink (-0.5%) also recorded declines.
The volume of all stablecoins stood at $74.5 billion, representing 91.8% of the total crypto market’s 24-hour trading volume, according to CoinMarketCap.
In the last 24 hours, Bitcoin’s market cap fell to $1.263 trillion, with its dominance at 55.87%. Bitcoin’s trading volume surged 67.7% to $35.3 billion during the same period.
CoinSwitch Markets Desk noted that despite the decline in Bitcoin, it remains on track to close Q3 with positive gains. Historically, when Bitcoin finishes September in the green, it tends to extend those gains through October, November, and December. As Q4 begins today, all eyes are on whether this trend will continue.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)
