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The cryptocurrency market continues to weaken, trading lower on Tuesday ahead of the US Federal Reserve’s monetary policy decision tomorrow.Bitcoin (BTC) and other digital asset markets saw significant gains after Ripple (XRP) earned a partial victory against the United States Securities and Exchange Commission (SEC) on July 13. However, the market has been in a downward trend since last weekend, due to several factors.
Crypto Space Dough Macroeconomic Factors
Recently, the SEC signaled it would be appealing a recent ruling against the agency in its case against Ripple Labs and the XRP token. This may dampen the enthusiasm that fueled the brief rally in the crypto market. In addition, the US Federal Reserve, the Bank of Japan, and the European Central Bank (ECB) will all announced its key interest rate decision this week, impacting a new asset class.
According to the report, Federal Open Market Committee (FOMC) is expected to raise interest rates by 25 basis points this week in the hope that this may be the final rate hike by the Federal Reserve for the foreseeable future. Echoing the same, the ECB is also likely to continue raising interest rates in July.
Fed Chair Jerome Powell and ECB President Christine Lagarde have warned that inflation remains too high, forcing them to raise borrowing costs further. However, the Bank of Japan remains the outlier, with more than 80% of analysts surveyed expecting Governor Kazuo Ueda to continue pumping support to the No. 1 economy. 3 world even as inflation remains above the 2% target.
Bitcoin Swimming Red
These factors have pushed the total crypto market cap down by nearly $40 billion in a day. According to CoinMarketCap, the global cryptocurrency market cap is trading lower, around $1.17 trillion, down 1.65% in the last 24 hours. Meanwhile, Bitcoin (BTC) fell 1.86% to trade at $29,176.
Over the past seven days, the biggest digital asset is down 2.77% after posting its most impressive price spike two weeks ago when Ripple earned a partial victory in court against the SEC. Bitcoin dominance over the last 24 hours also fell 0.13% to 48.44%.
Bitcoin (BTC) volatility also fell to its lowest level in a year as investors await tomorrow’s FOMC meeting. The 30-day estimate for BTC volatility fell to just 0.74%, which is the lowest level since January 16, 2023. According to experts, BTC needs to hold $28,500 in case of further declines to regain lost value.
Altcoins Plunge Deeper
Its largest peer, Ethereum (ETH) slipped 0.79% in the last 24 hours to trade at $1,855. Meanwhile, the second-largest digital token slumped 2.49% over the past week. Apart from that, other crypto tokens also continued their downward movement on Tuesday.
XRP has lost more than 4% in the last 24 hours to trade at $0.68. Alongside the broader crypto market, Cardano (ADA) and Polygon (MATIC) each shrank by more than 2%. Solana (SOL) is down more than 5% in the last 24 hours.
Despite Market Turbulence, DOGE Gathers Steam
Despite the drop in price, Dogecoin (DOGE), the largest meme coin in the crypto ecosystem, is experiencing a price increase and in other on-chain metrics such as social media dominance in light of Twitter’s rebranding to X.
Over the last 24 hours, the dog-themed cryptocurrency jumped 3.03% to $0.076. It is possible that the meme coin price rally was triggered by billionaire Elon Musk’s interest in DOGE, speculation of DOGE tokens being used as payment on applications and on-chain metrics is bullish.
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