Bitcoin and Ethereum Face Losses as FOMC Meeting Looms

The Federal Open Market Committee (FOMC) meeting is set for Tuesday and Wednesday, and investors are on edge. Markets are watching closely for any signals on interest rates

The Federal Open Market Committee (FOMC) meeting, set for Tuesday and Wednesday, has investors on edge as they await any signals on interest rates.

After Federal Reserve Chairman Jerome Powell hinted at a wait-and-see approach, markets are closely watching for the Fed’s stance on pausing or adjusting rates.

The US economy is already navigating new policies, including President Donald Trump’s aggressive tariffs, which are beginning to show their impact.

Stock markets are wobbling in anticipation, and investor sentiment is still shaky.

Crypto Market Slides 3.1 Percent in 24 Hours

The global crypto market cap dropped by 3.1 percent in just 24 hours, as Bitcoin and Ethereum both slid.

Bitcoin price slid 1.9 percent in the last 24 hours, trading at $82,888 by press time. The largest cryptocurrency saw a sharp single-day drop of 2.09 percent yesterday, closing at $82,577.

The second-largest cryptocurrency, Ethereum, also saw a significant drop, falling from $1,935 to $1,886 yesterday, a decline of 2.52 percent. In the last 24 hours, it lost another 2.4 percent.

suggest that this drop in sentiment is largely driven by concerns over economic policies and regulations.

Will the Fed Keep Interest Rates Steady?

As the FOMC meeting begins, most experts predict that the Fed will not make any changes to interest rates. Currently, the federal funds rate remains between 4.25 percent and 4.5 percent, with no immediate adjustments expected.

At the same time, inflation in the US has been gradually decreasing. In February, it dropped from 3 percent to 2.8 percent, and forecasts suggest it could fall further to 2.5 percent in March.

Trump’s Tariff Policy Creates More Uncertainty

President Trump recently imposed import tariffs on China, Mexico, and Canada. His administration has also announced plans to expand these tariffs further.

Many believe the Fed will avoid making any major decisions on interest rates until the economic impact of these trade policies becomes clearer. However, some experts warn that tariffs could drive inflation higher, which could complicate the Fed’s future approach.

US Markets Show Signs of Weakness

Stock futures have declined, signaling that investor sentiment remains cautious.

Futures tied to the Dow Jones Industrial Average fell by 44 points, while S&P 500 futures slid by 3.5. Nasdaq-100 futures also decreased by 8.5.

The cryptocurrency market followed suit, with nearly all top-ten digital assets experiencing losses over the last 24 hours.

Despite $253 million in crypto futures liquidations over the past day, leverage remains high, suggesting that traders are still taking risks.

Funding rates have stabilized at neutral levels, indicating mixed sentiment in the market.

For now, crypto traders are looking for a clear signal to determine the market’s next move. A shift in Fed policy or a major institutional investment could provide that catalyst. Until then, we can expect more volatility in the crypto market.