Pi Network (PI) price drops 13% as cryptocurrency market resumes its downward trend

Cryptocurrency prices resumed their downward trend on Tuesday as market participants awaited the second Federal Reserve interest rate decision of the year.

Cryptocurrency prices resumed their downward trend on Tuesday as market participants prepared for the second Federal Reserve interest rate decision of the year.

Pi Network (PI) token price slid almost 13% as one of the worst performers. JasmyCoin (JASMY) dropped 6%, while Litecoin (LTC) and Ethena (ENA) fell by over 5%.

The total market cap of all cryptocurrencies decreased by 1.70% to reach $2.7 trillion. This marks a decline of more than $1 trillion in value over the past few months. Total liquidations in the last 24 hours rose above $227 million.

The crypto sell-off was in sync with a stock market downturn. The Dow Jones index slid by 410 points, and the tech-heavy Nasdaq 100 declined by 350 points. Top blue-chip stocks, including NVIDIA, Tesla, Microsoft, and Apple, each slid by over 1%.

Jasmy, Pi Network, LTC, and ENA slip ahead of FOMC decision

The ongoing crypto and stock market crash is because the market is adjusting to the upcoming Federal Reserve or FOMC interest rate decision. It has already started its two-day meeting, with the final decision expected on Wednesday.

The Fed is expected to keep interest rates unchanged at 4.50%. However, traders will closely follow the quarterly dot plot, which provides insights into the timing of the next rate cut.

Stock and crypto investors are hoping that the recent sell-off and the rising fear of a recession will prompt some Fed official to adopt a more dovish stance. A Fed put would serve as a catalyst for Bitcoin (BTC) and altcoins like Pi Network, Ethena, Jasmy, and Litecoin.

In a note to Bloomberg, an analyst stated: “The ongoing trade tensions and tariff implementations have brought significant uncertainty. Investors are eager to understand how these policies are impacting the Fed’s economic outlook, particularly regarding inflation and growth projections.”

Bitcoin and these altcoins also declined after Ki Young Ju, a well-known analyst and the founder of CryptoQuant, expressed his view that the bull market has come to an end.

Ju said: “I’ve been optimistically calling for a bull market for the past two years, even when indicators were on the fringes. But I apologize to shift my stance, as it now appears fairly clear that we’re transitioning into a bear market.”

On a positive note, a more dovish Fed stance could benefit Bitcoin and altcoins—similar to the market reaction during the onset of the COVID-19 pandemic. Back then, cryptocurrencies initially crashed but rebounded strongly after the Fed slashed interest rates.