FOMC Jitters Send Crypto Markets into Turmoil
Crypto markets have been under pressure ahead of the US Federal Reserve's FOMC meeting on September 16, with Bitcoin (BTC) and Ethereum (ETH) experiencing a decline in value.
The Fed's decision is expected to be hawkish, with market expectations indicating a nearly 90-93% chance of a 25-basis-point rate hike. This has led to a selloff in risk assets, including cryptocurrencies, as investors seek safer havens such as cash and bonds.
The CLARITY Act, which aimed to provide regulatory clarity for the crypto industry, failed to advance in the US Senate, adding to uncertainty and dragging down major tokens. However, some sectors such as GameFi and Arbitrum have shown relative strength, with the GameFi sector jumping 9.7% in 24 hours.
The Bitcoin price has been affected by these macro headwinds, dropping towards the $75,000 area on September 15-16, before recovering slightly to around $76,000. The total crypto market capitalization is now around $2.58 trillion.