Bitcoin’s recent attempt at a significant rally was halted on Tuesday, as sellers quickly took control. However, the cryptocurrency managed to hold the $27,000 level, closing the day at $27,180, representing a 1.4% gain over the past 24 hours. The broader CoinDesk Market Index (CMI) also saw a 1% increase, although ether (ETH) underperformed with just a 0.1% gain.
Earlier in the day, bitcoin reached its highest price in three weeks at $27,475, but the surge was short-lived. This pattern of quick seller responses has been consistent for months, limiting bitcoin’s ability to sustain a rally.
The U.S. Federal Reserve’s Federal Open Market Committee (FOMC) is expected to hold its benchmark interest rate steady. Investors will be closely watching for any clues about the future direction of monetary policy.
The focus now turns to the outcome of the two-day policy meeting of the FOMC on Wednesday. While it is widely anticipated that the committee will maintain the current interest rate range of 5.25%-5.50%, market participants are eager to learn about any updates to the central bank’s economic projections. Additionally, investors will be keen to hear what Chairman Jerome Powell has to say in his post-meeting press conference.
The next FOMC meeting is scheduled for early November, and current market expectations posit a 70% likelihood of continued steady policy. However, any unexpectedly hawkish economic projections or comments from Powell could potentially have a negative impact on both the cryptocurrency and traditional markets.
Analysts have noted that bitcoin’s dominance in the crypto market has reached 50% and may continue to rise. However, the outcome of the Fed meeting could influence the overall market sentiment and potentially affect bitcoin’s performance in the near term.
Sources:
– CoinDesk Market Index (CMI)
– Federal Open Market Committee (FOMC)
– Jerome Powell