Crypto Market Dives Ahead of Fed Rate Hike Decision

The cryptocurrency market is experiencing a downturn ahead of the Federal Reserve's monetary policy decision. Bitcoin (BTC) has declined for the second straight day and trades near $76,000. Ethereum (ETH), meanwhile, is under pressure near lower support levels due to $141 million in ETF outflows.

Ripple (XRP) has dipped and stays below the 50-day and 200-day EMAs, moving in tandem with downtrending momentum indicators. The US Federal Reserve is widely expected to raise interest rates to 3.75%-4.00% later on Wednesday, which could weigh on risk assets.

The Crypto Finance team has stated that they 'expect the FOMC announcement and subsequent press conference to be a major volatility catalyst' with the potential for sharp and erratic moves across asset classes.

Bitcoin spot Exchange-Traded Funds (ETFs) saw outflows of $450 million on Tuesday, following inflows of $160 million the previous day. Ethereum spot ETFs similarly saw outflows totaling $141 million on Tuesday. The technical analysis suggests that Bitcoin bulls are losing ground as price stays comfortably above the 50-day, 100-day and 200-day Exponential Moving Averages (EMAs).