The cryptocurrency market saw minimal changes on Tuesday, with dogecoin (DOGE) and XRP leading the decline among major tokens, both experiencing losses of just over 3% in the last 24 hours. The CoinDesk 20 Index (CD20), which measures the broader crypto market, dropped by 2%.
This lack of volatility comes as bitcoin (BTC) traders prepare for the Federal Open Market Committee (FOMC) meeting scheduled for Wednesday, which could impact monetary policy and affect risk assets like cryptocurrencies.
The Federal Reserve is expected to keep interest rates unchanged at 4.25%-4.50%, and any statements made by Chair Jerome Powell could influence investor confidence. A hawkish stance could put pressure on bitcoin and lead to more significant losses in alternative coins, while a dovish approach could trigger a relief rally.
Traders from QCP Capital mentioned in a broadcast message on Tuesday that a rate cut is unlikely, and any dovish signals from Powell could drive positive momentum in the market.
Agne Linge of WeFi highlighted that market volatility remains high, with the crypto fear and greed index showing “extreme fear,” reflecting investor concerns about inflation, trade tensions, and geopolitical issues.
Bitget Research’s chief analyst, Ryan Lee, stated that bitcoin is currently in a narrow range, with the potential to reach either $75,000 or $90,000 depending on traders’ reactions to the U.S. rate decision.
Lee also mentioned that Bitcoin’s recent pullback is testing key support levels and that any unexpected moves from the FOMC could impact the market sentiment.
