The cryptocurrency market is currently witnessing notable price fluctuations. As the US Federal Open Market Committee (FOMC) gears to announce its latest interest rate decision, Bitcoin experienced a 3.33% drop, trading at $102,185 on international platforms like CoinMarketCap.
The market is on tenterhooks awaiting the FOMC’s verdict. The CME FedWatch tool indicates a 99% likelihood of maintaining the current rate. This anticipation has heightened market uncertainty, prompting advisories for traders to proceed with caution due to expected volatility.
Ether, another major cryptocurrency, mirrored Bitcoin’s decline. It fell by 2.80% to $3,124 on global exchanges. On Indian exchanges such as CoinSwitch and CoinDCX, Ether’s prices saw a sharper drop of 3.50%, positioning it at $3,373.
Despite the broader market’s instability, Ethereum has endured a nearly 7% decrease in January alone, diverging from Bitcoin’s general upward trend. However, historical performance suggests a potential rebound, as February and March have typically been strong months for Ethereum. Analysts currently interpret the downturn as a segment of a larger bullish trend for the cryptocurrency, though it faces significant resistance at the $3,500 mark.
According to CoinMarketCap data, the crypto market cap decreased by 1.17% in the last 24 hours, and the sector is now valued at $3.47 trillion.
Read: Bitcoin Drops Slightly, Market Volatility Persists Across Global Exchanges