Cryptocurrencies traded mixed on Tuesday evening as investors awaited the Federal Reserve’s upcoming rate decision scheduled for Wednesday. Bitcoin, the largest cryptocurrency by market capitalization, experienced a decline of 1.66% and was priced at $42,799. Ethereum, on the other hand, saw a gain of 0.71% and was valued at $2,334. Dogecoin, a popular meme cryptocurrency, recorded a loss of 2.14% and was priced at $0.079.
The two-day policy meeting of the U.S. Federal Reserve commenced on Tuesday, with the outcome expected to be announced on Wednesday. While it is predicted that the Fed will maintain unchanged rates at this time, there are strong expectations that the central bank will provide indications about its intentions to begin reducing rates.
The consensus among experts is that the US Federal Reserve is likely to initiate rate cuts starting in May or June. This anticipation takes into account the robust US job market and inflation, which continues to exceed the Fed’s 2% target.
Bitcoin exchange-traded funds (ETFs) saw a strong start to the week, with net inflows into the funds surging back above $1 billion. According to analyst Kenneth Worthington, the Bitcoin ETFs offered by BlackRock and Fidelity experienced significant inflows on Monday and are leading the market.
Monday’s market movements resulted in net inflows of $1.05 billion, although this was offset by a $5.2 billion reduction reported by Grayscale, a digital asset management firm.
The significant inflows observed for new ETFs indicate heightened competition in the fee structure among these funds. The Invesco Galaxy Bitcoin ETF, which currently holds approximately $300 million in assets under management, is set to transition to a management fee of 0.25% following the conclusion of its waiver period. This adjustment represents a reduction from the previously anticipated 0.39% management fee.
In terms of top gainers in the past 24 hours, Render, a cryptocurrency, recorded a gain of 5.87% and was priced at $4.59. Frax Share saw a gain of 5.34% and was valued at $10.38, while Gnosis experienced a gain of 4.11% and was priced at $231.1. The global cryptocurrency market cap now stands at $1.67 trillion, showing a 2.63% increase in the past 24 hours.
In the traditional stock market, the S&P 500 concluded Tuesday nearly unchanged as investors awaited the latest Federal Reserve decision on interest rates. The Dow Jones Industrial Average surged by 133.86 points, or 0.35%, achieving its seventh record close for the year. The Nasdaq Composite retreated by 0.76%.
Cryptocurrency analyst Michael Van de Poppe maintains that the scenario regarding Bitcoin remains unchanged. He believes it is time for consolidation and for altcoins to run. Another pseudonymous trader, The Flow Horse, predicts that the forthcoming Bitcoin halving in April is poised to propel the value of BTC.
On-chain analyst Ali Martinez noted that Bitcoin whales were accumulating more BTC during the recent price correction. Around 67 new entities now hold 1,000 BTC or more, marking a 4.50% increase in two weeks.
Overall, the cryptocurrency market continues to be influenced by various factors, including the Federal Reserve’s rate decision and the anticipation of rate cuts in the future. With Bitcoin ETFs experiencing significant inflows and altcoins gaining momentum, the market remains dynamic and full of opportunities.
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