Get ready for a bumpy ride! Cryptocurrency prices took a nosedive on Tuesday, March 19th, with Bitcoin leading the slide. The leading digital asset plunged 5.6%, tumbling below the key psychological level of $65,000 and settling at around $64,356. This drop can be attributed to a combination of profit-taking by investors and jitters ahead of the crucial US Federal Reserve policy decision scheduled for Wednesday.
Ethereum, the world’s second-largest cryptocurrency, wasn’t spared either, experiencing a steeper decline of over 7%, bringing its price down to $3,350. The overall cryptocurrency market capitalization mirrored the bearish sentiment, shrinking by 5.35% to roughly $2.45 trillion within the last 24 hours.
Eyes on the Fed: Will Rates Stay Put?
The upcoming Fed decision is casting a long shadow over the crypto market. While a rate hike isn’t anticipated on Wednesday, investors are keenly waiting for the Fed’s updated economic projections and commentary from Chair Jerome Powell. Recent inflation reports exceeding expectations have dampened hopes of interest rate cuts this year.
Bitcoin’s Technical Outlook: A Mixed Bag
Analysts are scrutinizing Bitcoin’s technical indicators to gauge its future trajectory. While some indicators suggest a potential further dip towards the $62,000-$64,000 range, others offer a glimmer of hope for a possible rebound.
Altcoins Feel the Heat
The selling pressure wasn’t limited to Bitcoin. Popular altcoins like BNB, Solana, Cardano, and Avalanche all witnessed significant price drops, ranging from 4.6% to 12%.
Overall, the cryptocurrency market is experiencing a period of uncertainty as investors await the Fed’s next move. Stay tuned for further updates on how the market reacts to the policy decision and Powell’s comments.
This information is not legal advice. Do your own research before making any decisions. Only invest what you can afford to lose and seek independent financial advice if needed. Understand the risks involved before purchasing any cryptoasset