Crypto Prices Are Crashing Because of What’s Coming on Wednesday
The week is off with bulk of the cryptocurrency market trading in the red, which is largely attributed to the upcoming rate hike announcement from the U.S. Federal Reserve Bank.
According to a report by Yahoo Finance, Fed officials are expected to deliver a third-straight 75-basis-point increase to their benchmark policy rate during the two days meeting ending on Wednesday.
Investors across both the crypto market and traditional equities markets are bracing for the impact of the announcement. This is especially as higher-than-expected inflation figures in August (an 8.3% YOY increase in consumer price index -C PI) sparked more pessimism about the Fed rate hike.
Data from CryptoRank, a cryptocurrency price data aggregator, shows that all of the top 10 cryptocurrencies by market cap have dropped between six to 11% in price in the last 24 hours. Bitcoin (BTC), the market leader fell around 8% to be trading at around $18,400.
Similarly, the second largest crypto, Ether (ETH), fell 11% on the day to currently be trading at around $1,290. The current ETH price is also a 26.1% drawdown from the one-month high price of about $1,800 it reached in the week preceding the Ethereum blockchains merge event.
Meanwhile, BNB, XRP, ADA, SOL, and DOGE have fallen about 7%, 11%, 10%, 8%, and 8.5% respectively on the day per data at the time of writing.
Despite the turbulent market action, analysts have not given up the notion that Bitcoin is forming a bottom. DrProfitCrypto, a pseudonymous crypto market analyst, told his over 35,000 Twitter followers that the pioneer cryptocurrency has entered a "bottom phase" in which he is expecting the price to remain stable between $18,000 and $25,000 till March 2023.
However, the analyst adds the
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