The crypto market has shifted to a bearish trend as growing uncertainty and investor fear take hold. Key factors contributing to the downturn include the U.S. presidential election turmoil, an assassination attempt on Donald Trump, and the upcoming Federal Open Market Committee (FOMC) meeting.
Consequently, Bitcoin has fallen from its $60K mark, Ethereum has dropped below $2,400, and XRP has lost its $0.60 level. The market’s cautious sentiment reflects widespread anxiety over these developments.
The satoshi streets bathed in Red with major altcoins like Solana (SOL), XRP, and Dogecoin (DOGE), contributing to a decrease in the market cap from $2.1 trillion to $2.03 trillion.
Bitcoin’s Volatility
Following the news, Bitcoin’s price took a tumble as traders hit the brakes before this week’s Federal Reserve meeting, where a rate cut is on the horizon for the first time since 2020. With the CME FedWatch tool showing a 61% chance of a 50 bps cut and 39% for 25 bps, anticipation is high.
PlanB pointed out that miners are still in a pinch post-halving and need a major price boost to rev up profits.
Analyst Credible Crypto noted that Bitcoin retraced from the $61-62K resistance but is holding above $58,500, crucial for avoiding deeper drops.
Coinglass data reveals a $35 million Bitcoin liquidation spree, with $30 million in longs getting wiped out. Bitcoin dipped to a 24-hour low of $58,112 as traders sold off below the 50-SMA.
The price bounced back from the 0.618 Fib level to the 0.5 Fib level. Expect Bitcoin to move sideways near $59,000 until the FOMC meeting—fingers crossed for a 50 bps rate cut to spark a market rally!
Ethereum’s Struggles
Ethereum’s price tumbled below $2,300 due to the activity of a major whale selling off ETH holdings after eight years of dormancy, alongside bearish moves from other large holders.
Analyst Ali Martinez highlights that ETH faces further risks if it breaks below the support range of $2,290 to $2,360, with a potential drop toward $1,800 if the key support fails. Ethereum’s price dropped 6% in the last 24 hours.
Altcoin Reactions
Bitcoin and Ethereum’s declines have ripple effects on altcoins: XRP is at $0.572 with a 23.16% drop in 24-hour trading volume; Solana (SOL) is priced at $131.01, down 3.82% with $1.73 billion in trading volume; Dogecoin (DOGE) is at $0.1017, falling 2.84% with $517.94 million in volume; Cardano (ADA) is $0.0008529, down 2.21% with $34,841 in volume.
The global crypto market cap has decreased by 2.9% to $2.04 trillion. The fear & greed index has dropped from 51 (Neutral) to 39 (Fear), with the market awaiting the FOMC meeting and Jerome Powell’s speech for further direction.
Looking at the current sentiment, is a rebound possible by month end as predicted by many analysts?