Bitcoin Spikes Ahead of Fed Meeting
Volatility is on the rise in the crypto market as Bitcoin (BTC) spiked more than $1000 in intraday trading on Monday ahead of the start of the September Federal Open Market Committee (FOMC) meeting. Traders are anticipating the Fed’s announcement on interest rates, and there are concerns that a recent uptick in inflation could lead to rate hikes. Despite the volatility, Bitcoin has seen a rebound from its recent low and technical analysts suggest the downtrend may be coming to an end.
Investors Predict No Rate Increase
Investors in the crypto market are assigning a 93% probability that the Federal Reserve will maintain its current interest rates in September, with only a 7% chance of a quarter-point rate increase. The Fed has acknowledged the persistently high levels of inflation and the potential risks it poses. Analysts believe that the current dealing range for Bitcoin provides opportunities for higher prices in the short term.
Altcoins Show Positive Trend
Altcoins in the market have shown a positive trend, with all but eight tokens in the top 200 recording gains. eCash (XEC) led the gainers with a 12.2% increase, followed by Merit Circle (MC) with an 11.6% gain, and Worldcoin (WLD) with a 10% increase. However, STP (STPT) experienced a loss of 7.65%, while aelf (ELF) declined by 4.62%, and Everscale (EVER) fell by 4.35%. The overall cryptocurrency market cap currently stands at $1.06 trillion, with Bitcoin’s dominance rate at 49%.
