Bitcoin has fallen below $94,000 ahead of the Federal Reserve’s decision. Other cryptocurrencies also faced a downturn, although daily market trading volume has risen sharply. Analysts discuss potential liquidity levels and the impact of macroeconomic factors on market sentiment, while Bitcoin saw a spike in active addresses indicative of strong network activity.
In today’s crypto landscape, Bitcoin has slipped below $94,000 as traders await the Federal Reserve’s decision. This drop has also impacted other cryptocurrencies, with notable altcoins like Shiba Inu, Dogecoin, and Cardano all experiencing a dip of more than 1%. Specifically, XRP fell by 1.4%, BNB by 1%, Toncoin by 1.7%, and Hedera dropped by 1.4%.
Currently, Bitcoin’s market capitalisation stands at roughly $1.879 trillion, while its market dominance has decreased to 63.69%. Interestingly, daily trading volume across the crypto market has surged 31.6%, reaching $21.52 billion. Stablecoins are leading this volume, accounting for more than 91% of trading activity.
“I think we could see liquidity test around $91,000 in the near future,” says Vikram Subburaj, who is the CEO of Giottus. He notes that while an interest rate cut might uplift market sentiment, most analysts don’t expect that to happen.
On a more positive note, Alankar Saxena, Co-founder and CTO of Mudrex, highlighted that Bitcoin managed to record over 925,000 active addresses in one day. This is quite significant as it’s the highest activity level seen in six months. Saxena added, “If the Fed adopts a dovish stance, it could potentially spark a rally pushing towards the $100,000 threshold,” with strong resistance anticipated at around $97,900.
As crypto traders brace for the upcoming Federal Open Market Committee (FOMC) decision, there’s a palpable sense of caution intertwined with optimism. Investors are weighing both the macroeconomic conditions alongside the technical signals from the market. We’ll have to wait and see how this all unfolds, given today’s shifts in price and volume.
