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Crypto Market Remain Bearish Ahead of FOMC Meeting, Another Blow to Cryptocurrencies?

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VOC, Voice of Crypto, Low Cap Crypto

There’s a head-spinning amount of news for the Crypto markets to navigate in the week ahead due to the upcoming FOMC meeting on July 27.

The Crypto market seems to be under selling pressure, pushing overall crypto prices to take a downward turn. Bitcoin, the flagship cryptocurrency, has declined by almost 4% in the last 24 hours and is currently trading at the $21,944 level.

According to Popular market analyst Rekt Capital, the current 200-week MA continues to figure as resistance for BTC.

Bears still have a firm grip over Bitcoin and crypto and last week’s rebound wasn’t a formidable trend reversal. If the broader macro environment continues to dip further, we could see BTC diving to $20,000 again.

Following suit, ETH, the second largest crypto by market cap, has fallen by about 5% and is currently priced at $1,520. According to On-chain data provider Santiment, the most-anticipated Ethereum Merge, which was expected to trigger ETH price northwards, is dying as Ethereum price is constantly falling.

In addition, Solana, Avalanche, and Cosmos have also corrected their previous gains and are presently big losers in the crypto market.

Many Crypto traders and experts are expecting a most volatile week ahead. This is majorly because of the FOMC meeting scheduled on the 26th and 27th of July. The Federal Open Market Committee is the Fed’s monetary policymaking body and will decide on interest rate hikes.

The recent interest hike of 75bps affected the Crypto market adversely in the last few weeks. As per the CME FedWatch Tool, a 78.7% chance of a 75bps hike and a 21.3% chance of a 100bps hike is expected.

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Federal Reserve Chair Jerome Powell on July 22 confirmed that interest rate hikes would likely slow after the 75 bps rate hike next week.

Recently, MFHoz, a famous crypto trader, revealed that the Fed expanded its balance sheet to limit the damage from a 100 bps hike. 

A Crucial Week for Crypto Market

In addition, this week, the Second-quarter gross domestic product will be revealed on July 28. The data for Q1 showed negative growth in GDP. If the data follows the same negative trend in Q2, it would indicate that the US will enter a recession. 

Moreover, major Tech companies like Google, Microsoft, Meta, Apple, and Amazon will report their financial figures from Q2. Previous data has shown that technology stocks are highly correlated with the crypto market.  Any turmoil in the stock market could lead to crashing crypto prices. 

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Why are Crypto Experts Bullish?

Despite the current bear Crypto market, Binance CEO “CZ” in a tweet on July 23 strongly reaffirmed a bullish outlook. He claims this time is to “BUIDL” rather than “HODL” as the utility is growing across the market.

Ethereum will be deflationary after the Merge; Vitalik Buterin confirms this at the Ethereum Community Conference in Paris. The decrease in circulation supply will likely increase prices under the right conditions.

 

Krutika is an experienced Crypto News writer and Technical analyst. With over 3 years of extensive crypto knowledge, she has written on various subjects, including Price analysis, Whitepapers, Metaverse, and other crypto-related topics.

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