Bitcoin, Ethereum Drop, Dogecoin Flat: Analyst Sees ‘Peak Crypto Pessimism’ Setting In Ahead Of ‘Fed’s Fireworks’ – Bitcoin (BTC/USD), Ethereum (ETH/USD), Dogecoin (DOGE/USD)

Major coins tumbled lower on Tuesday night as the global cryptocurrency market cap fell 2.5% to $921.9 billion as of 8:18 p.m. EDT.

Price development of major coins
coin 24 hours 7 days Price
Bitcoin BTC/USD -3.15% -6.3% $18,935.15
ether ETH/USD -3.5% -15.7% $1,328.70
Dogecoins DOGE/USD 0.2% -2% $0.06

Top 24-hour Gainers (data from CoinMarketCap)
cryptocurrency 24-hour % change (+/-) Price
XRP (XRP) +6.35% $0.41
helium (HNT) +5.5% $4.89
Stellar (XLM) +5% $0.12

See also: Best USDC Interest Rates

Why it matters: Bitcoin and Ethereum were trading lower prior to the Federal Committee of the Free Market (FOMC) meeting due Wednesday.

On Tuesday, the S&P 500 and Nasdaq closed down 1.1% and 0.95%, respectively, while US stock futures were marginally higher at the time of writing.

The probability of a 75 basis point rate hike was 82% according to the CME FedWatch tool – a signal that investors can expect a hawkish move from the US Federal Reserve at the end of the FOMC meeting.

Screenshot of CME Group’s Fedwatch tool

“The Fed begins its two-day monetary policy meeting and while 75 basis points is widely expected, the Fed Chair’s key message [Jerome Powell] rates could stay elevated much longer than the market expects,” he said Edward Moyaa senior market analyst at OANDA.

Speaking on Bitcoin, Moya said: “The fate of Bitcoin will be determined by fireworks from this week’s central bank decisions, which could help fuel sell-offs to retest summer lows. The peak of pessimism is almost here for crypto, which is needed before longer-term money starts piling up again.”

Justin Bennett tweeted on Tuesday that the total market cap chart wasn’t the “best looking” when it went into the FOMC.

“Reclaim would be bullish, but this $913 billion area is resistance [the total market capitalization] from now on,” said the dealer.

cryptocurrency trader Michael van de Poppe said on Twitter that it was “impressive” that interest in Bitcoin “was terribly low at the time, whereas a year ago everyone was jumping over each other to get in.”

“The irony is that the quiet time is the best time to look for an asset like this [Bitcoin]That is now.”

A tweet from a community-driven analytics platform CryptoQuant noted that it was possible that selling pressure from long-term holders was putting downward pressure on the top coin.

The CryptoQuant analyst pointed to a metric known as Exchange Inflow Coin Days Destroyed (CDD) to clarify their point. Higher values ​​of the metric indicate that more long-term holders have moved their coins for sale.

Bitcoin Exchange Inflow CDD – Courtesy of CryptoQuant

The analyst said that the metric has been surging lately and a move to $16,000 could be “the most likely scenario for Bitcoin in the near term.”

Continue reading: A Look at Bitcoin, the Crypto Market Before the Fed Rate Decision: What to Consider

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