Cryptocurrency prices are once again facing heavy losses as the Federal Open Market Committee (FOMC) meeting approaches. A collapse in cryptocurrency prices is expected due to the upcoming Federal Reserve monetary policy meeting. Bitcoin's price corrected 2% to start the week, and is trading at $62,400 at press time. Ethereum, on the other hand, faced a steeper decline, correcting 5% and trading at $3,150. While large-cap cryptocurrencies are struggling, demand for new cryptocurrencies is high.
The impact of the Federal Open Market Committee meeting on cryptocurrency prices
The Federal Open Market Committee meets eight times a year to decide on the US central bank's monetary policy. The primary focus is on the short-term federal funds rate, which has a direct impact on market liquidity. Market expectations regarding the Federal Reserve's monetary policy have undergone a significant shift. Initially, the market expected 7 interest rate cuts in 2024 due to lower inflation levels in 2023. However, poor inflation data in the first quarter of 2024 led the market to expect only 2 interest rate cuts this year. Some analysts even believe that the Fed may not cut interest rates at all in 2024.
This shift in market expectations has a bearish impact on the cryptocurrency market. Cryptocurrency prices depend heavily on global liquidity, and rising interest rates negatively affect it. According to CME FedWatch, the US central bank is expected to keep interest rates unchanged at the next FOMC meeting. However, it is Fed Chairman Jerome Powell's comments that will receive the most attention from the market. The hard-line tone of his speech could lead to a further collapse in cryptocurrency prices.
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Bitcoin and Ethereum price levels to watch
Traders are anticipating a major swing in cryptocurrency prices immediately after the FOMC meeting. Popular cryptocurrency analyst CryptoNuevo suggests that Bitcoin price may decline over a long-term range and correct to $60,200 before seeing any upside. Likewise, Crypto trader Tony expects the price of Ethereum to reach $2,700 in the coming months, especially since the SEC is willing to publicly claim that Ethereum is a security.
New cryptocurrencies are on the horizon
Despite market turmoil, new low-value tokens continue to attract significant interest. For example, Slothana's prequel raised more than $15 million in less than a month. Experts believe that Slothana could be the next big coin for the Solana meme, following in the footsteps of Slerf. Rumors suggest that Slothana may have the same development team behind it as Smog, which has seen a rise of nearly 27,000%.
Another new cryptocurrency, Bitcoin Minetrix ($BTCMTX), has raised over $13.5 million in its initial coin offering (ICO). Bitcoin Minetrix aims to make cryptocurrency mining rewards more accessible to small retail investors. The project plans to launch a decentralized cloud mining platform that will mine Bitcoin on behalf of its investors and later distribute profits in proportion to their initial investment. With the cryptocurrency mining industry expected to become highly profitable in the upcoming bull market, mining stocks and tokens like BTCMTX could see significant spikes in value.
Analysts like Michael Wrubel and Predir Capital believe that Bitcoin Minetrix has the potential to deliver 100x growth after its Initial Exchange Offering (IEO), scheduled for tomorrow at 10am UTC.
common questions
Question No. 1: What impact will the Federal Open Market Committee (FOMC) meeting have on cryptocurrency prices?
Answer:
The Federal Open Market Committee (FOMC) meeting affects cryptocurrency prices due to its impact on the monetary policy of the US central bank, especially the federal funds rate. Market expectations regarding the Federal Reserve's monetary policy can significantly impact global liquidity and interest rates, which in turn can impact cryptocurrency prices.
Question 2: What are the expected price levels for Bitcoin and Ethereum after the FOMC meeting?
Answer:
Traders are anticipating big movements in Bitcoin and Ethereum prices following the FOMC decision. Cryptocurrency analysts predict that the price of Bitcoin could fall to $60,200 and that the price of Ethereum could reach $2,700, especially with the Securities and Exchange Commission ready to publicly claim that Ethereum is a security.
Question 3: What new cryptocurrencies are gaining attention despite market turmoil?
Answer:
New low-value crypto tokens such as Slothana and Bitcoin Minetrix are attracting significant interest. Slothana, with similarities to Slerf, is expected to be the next big coin for the Solana meme. Bitcoin Minetrix aims to make cryptocurrency mining rewards more accessible to small retail investors, and is expected to experience significant growth post-IEO.
Question 4: How is the market reacting to the approaching FOMC meeting and what is the outlook for cryptocurrency prices?
Answer:
As the Federal Open Market Committee meeting approaches, the market faces uncertainty and volatility. Traders are closely monitoring the monetary policy decisions made by the Federal Reserve and the potential impact on cryptocurrency prices. The outlook for Bitcoin and Ethereum price levels is expected to be dynamic, and new cryptocurrencies will continue to attract investment as traders diversify their portfolios.
Disclaimer:This article is for informational purposes only and does not constitute financial advice. The opinions expressed here are solely those of the author and do not reflect the views of any sponsoring organization. Cryptocurrency investments carry risks, and readers should conduct their own research before making any investment decisions. Chain News Network is not responsible for any market losses
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