On January 29, 2024, the cryptocurrency market experienced a wave of uncertainty as traders braced for the upcoming Federal Open Market Committee (FOMC) meeting. Key digital currencies, including Bitcoin (BTC) and prominent altcoins like Ethereum (ETH), XRP, and Solana (SOL), suffered price drops, highlighting a climate of caution as market participants awaited the Federal Reserve’s interest rate announcement.
What Happened to Bitcoin and Ethereum Prices?
Bitcoin’s value fell by about 1% over the last day, hovering near $102,000 while its market dominance edged up by 0.4% to reach 58.36%. In contrast, Ethereum saw a more significant decline of 2%, settling at $3,132, with Solana also experiencing a 3% loss, trading at around $231.
How Did Market Capitalization Change?
The total market capitalization of cryptocurrencies dipped to $3.46 trillion, marking a 1% decrease. Additionally, trading volumes contracted by 40%, with total market activity falling to $116 billion as traders remained hesitant in light of the Fed’s upcoming decisions.
The day witnessed notable market activity, especially with MOVE surging by 16% driven by significant purchases from Donald Trump’s World Liberty Financial. Other cryptocurrencies, like dogwifhat (WIF) and Uniswap (UNI), also gained traction with increases of 6%.
- BTC ETFs reportedly sold approximately $800 million in Bitcoin before the Fed meeting.
- Many expect a dovish approach from Fed Chair Jerome Powell, which could favor the crypto market.
- Despite the downward trend, XRP remained stable above $3, supported by large-scale purchases.
Market volatility in the cryptocurrency sector is likely to continue, heavily influenced by the Federal Reserve’s interest rate decision. Traders are closely monitoring economic indicators and the Fed’s forthcoming policies as they navigate these turbulent waters.
