Bitcoin and a host of altcoins have seen little movement over the past 24 hours, ahead of a crucial week of interest rate decisions from central banks around the world.
According to Coinmarketcap data, at 7:53 a.m. on September 18, 2024 (Vietnam time), Bitcoin was trading at $60,231, up 3.99% in the past 24 hours. The trading volume of the cryptocurrency with the largest market capitalization was $38.3 billion.
Cryptocurrency volatility increased late last week as Bitcoin fell to a low of $58,200 before recovering slightly and trading above $58,600. The market remains divided as buyers and sellers debate Bitcoin’s future direction.
As Bitcoin fell, altcoins began to fall. In the past 24 hours, Ethereum fell as much as 6% to around $2,300 while Solana (SOL), Doge (DOGE) and Ripple (XRP) all fell around 5%.
Among the top 100 crypto assets, Injective (INJ), Internet Computer (ICP), Pepe (PEPE), and Ondo (ONDO) recorded the biggest losses at an average of 7%.
Cryptocurrency markets are bracing for more volatility as the Federal Reserve’s interest rate decision looms. Economists warn that a 25 basis point rate cut could trigger a “sell the news” event as the market has been anticipating the adjustment.
Market sentiment around the Fed’s rate decision has shifted dramatically. The CME FedWatch tool now shows a 41% chance of a 25 basis point cut and a 59% chance of a 50 basis point cut, up from just 30% last week.
Market participants appear to favor a 50 basis point cut. According to economist Steve Hanke of Johns Hopkins University, the cut could boost the cryptocurrency market, although a potential recession could trigger a sell-off in risk assets.
The Fed is expected to make a key decision on Wednesday, September 18, which could mark the first rate cut since 2020. At the same time, the Bank of England (BoE) and Bank of Japan (BoJ) will also announce interest rate decisions on September 19.
The BoE cut interest rates from 5.25% to 5% on August 1, marking the first cut since the start of its tightening cycle in late 2021. The BoJ, with its prolonged tight monetary policy and negative interest rates, is also closely watched at its upcoming meeting.
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