Crypto Markets Slump Ahead of Fed Rate Hike Decision
Crypto markets are experiencing headwinds as investors await the Federal Reserve's monetary policy decision on Wednesday.
Bitcoin (BTC) has declined for the second straight day and is trading near $76,000 ahead of the Fed announcement. Ethereum (ETH) is under pressure near lower support levels, weighed down by $141 million in ETF outflows. Ripple (XRP) dips below its 50-day and 200-day EMAs, moving in tandem with downtrending momentum indicators.
The uncertainty surrounding the Fed's decision has led to a broad retreat in cryptocurrency prices, with BTC holding near $75,000. Ethereum holds below the support-turned-resistance at $2,400 while remaining structurally resilient. Meanwhile, Ripple is trading lethargically below $1.30, suggesting growing risk-off sentiment after Monday's surge near $1.50.
The FedWatch tool shows that market participants are pricing in 92.5% odds of a rate hike to 3.75%-4.00%. Analysts argue that recent inflation pressures and elevated Crude Oil prices could support the central bank's need for tighter monetary policy.