Bitcoin, Ethereum, and Dogecoin Experience Decline as Investors Anticipate Fed's Interest Rate Decision

On Sunday, major cryptocurrencies saw a decline as investors prepared for the upcoming decision by the Federal Reserve regarding interest rates. The market's sentiment appeared to be cautious as traders awaited this key announcement.

Cryptocurrency	Gains +/-	Price (Recorded at 8:30 p.m. ET)
Bitcoin BTC/USD	-1.60%	$82,939.09
Ethereum ETH/USD	-2.00%	$1,899.03
Dogecoin DOGE/USD	-3.62%	$0.1701

Bitcoin's trading was quite volatile, ranging between $85,000 and $82,000 throughout the day. Despite some recovery in the previous week with a rise of 2.21%, the cryptocurrency still experienced a drop.

In the first quarter, Bitcoin lost over 11% of its value, contrasting sharply with the average gains of 51% that it has achieved historically.

During the same period, Ethereum's price fluctuated between $1,860 and $1,930, ultimately decreasing by over 7% in the past week, resulting in quarterly losses reaching 42%.

Moreover, the market faced significant liquidations, with more than $256 million being wiped out in the last 24 hours, primarily due to long positions being liquidated, which accounted for $177 million. This has led to a 2.76% drop in Bitcoin's Open Interest.

Despite the downturn, the percentage of traders betting on a price increase in Bitcoin increased to 52%, according to the Long/Short Ratio, indicating that some players might be trying to buy on the dip.

The overall mood in the market remains within the "Fear" zone, as indicated by the Crypto Fear and Greed Index.

Market Performers

In the last 24 hours, a few cryptocurrencies managed to stand out as top gainers:

Cryptocurrency	Gains +/-	Price (Recorded at 8:30 p.m. ET)
BinaryX (BNX)	+26.13%	$1.41
Helium (HNT)	+3.38%	$3.20
OKB (OKB)	+3.32%	$48.08

The global cryptocurrency market capitalization fell to $2.71 trillion, which marks a 2% decrease from the previous day.

Additionally, stock futures encountered declines on Sunday evening, with the Dow Jones Industrial Average Futures dropping by 156 points or 0.37% as of 8:45 p.m. EDT. Futures associated with the S&P 500 decreased by 0.45%, while Nasdaq 100 Futures fell by 0.51%.

Last week's trading ended on a negative note, with the Dow Jones Industrial Average and the S&P 500 losing 2.38% and 0.75%, respectively.

Focus on Federal Reserve's Meeting

This week, all eyes are on the Federal Reserve's policy meeting. The consensus is that the central bank is likely to hold interest rates steady.

Analysts, including the well-known cryptocurrency expert Ali Martinez, identified $81,400 as a crucial support level for Bitcoin. If the price remains above this threshold, it may continue its upward trajectory.

Analyst predictions hint at an ascending triangle pattern for Bitcoin, suggesting that a sustained closing above $84,500 could trigger an 8% price surge.

Another respected figure in the cryptocurrency community, Michaël van de Poppe, indicated that the upcoming week could turn out to be "strong and green" if altcoins do not experience a significant dump on Monday. He commented that while there was no major sell-off on Sunday, it remains a crucial macroeconomic week.

This leads to the assumption that provided Monday's market stays stable, the upcoming week could indeed see improved performance.

Image via Shutterstock

Bitcoin, Ethereum, Dogecoin, Fed, Market