Crypto Prices Plummet Ahead of FOMC Decision Amid Chip Sell-Off

Cryptocurrency prices declined over the past 24 hours due to increased anxiety ahead of the FOMC decision on Wednesday. The Federal Reserve's expected interest rate hike to combat inflation has markets bracing for a quarter percent increase, with a 32% likelihood of it happening.

A massive chip sell-off also weighed on sentiment, with Asian markets closing with heavy losses and tech-heavy Nasdaq Composite trading with losses of more than a percent. The decline in overall crypto market capitalization was around 3.6%, with Bitcoin (BTC) trading 4.1% lower at $62,883.40.

Bitcoin's year-to-date losses stand at 28.1%, while Ethereum (ETH) is still grappling with year-to-date losses of more than 37%. Other altcoins such as BNB, XRP, Solana (SOL), TRON (TRX), and Hyperliquid (HYPE) also recorded overnight losses.