The crypto market is experiencing a dip as investors become cautious ahead of the Federal Open Market Committee (FOMC) meeting. The meeting, scheduled for Tuesday and Wednesday, has investors on edge as they wait for signals on interest rates. Federal Reserve Chairman Jerome Powell has hinted at a wait-and-see approach, adding to the uncertainty surrounding the US economy due to new policies and aggressive tariffs.
As a result, the global crypto market has dropped by 3.1 percent in just 24 hours, with both Bitcoin and Ethereum sliding. Bitcoin recorded a sharp single-day drop of 2.09 percent, closing at $82,577, and has declined by another 1.9 percent in the past 24 hours. Ethereum also saw a significant drop, falling from $1,935 to $1,886, a decline of 2.52 percent.
Analysts believe that concerns over economic policies and regulations are driving this drop in sentiment. Many experts predict that the Fed will not make any changes to interest rates during the FOMC meeting, as the federal funds rate remains between 4.25 percent and 4.5 percent with no immediate adjustments expected. In addition, inflation in the US has been gradually decreasing, further supporting the expectation that interest rates will remain steady.
President Donald Trump’s tariff policy has also contributed to the uncertainty in the market. His administration has imposed import tariffs on China, Mexico, and Canada, with plans to expand these tariffs further. Many speculate that the Fed will avoid making major decisions on interest rates until the economic impact of these trade policies becomes clearer. However, experts warn that tariffs could drive inflation higher, complicating the Fed’s future approach.
The uncertainty in the stock markets is also reflected in the cryptocurrency market, with nearly all top-ten digital assets experiencing losses over the last 24 hours. Despite $253 million in crypto futures liquidations, leverage remains high, indicating that traders are still taking risks. Crypto traders are now eagerly awaiting a clear signal to determine the market’s next move, which could come from a shift in Fed policy or a major institutional investment. Until then, volatility is expected to continue.
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