Crypto Market Declines Amid Anticipation of Federal Reserve Rate Decision
The crypto market capitalization declined 1.2% to $3.17 trillion, with 86 of the top 100 coins falling in the last 24 hours. The total trading volume reached $116 billion. Bitcoin is trading at $90,480, down 1.1%, while Ethereum is at $3,122, down 0.3%.
Investors are awaiting a Federal Reserve rate decision this week, with expectations of a rate cut and a data-dependent stance from the Fed Chair. Market participants are anticipating guidance from Chair Powell. Bitcoin is currently facing resistance near $91,000 as the 20-day EMA coincides with last October's downtrend, suggesting potential range movement ahead of a breakout.
Aurelie Barthere of Nansen noted that the official announcement of Kevin Hassett as Fed Chair, delayed from this year, could be bullish for crypto in 2026. Meanwhile, the CFTC has launched a pilot program allowing crypto as collateral in derivatives markets, specifically involving BTC, ETH, and USDC.
Regarding institutional movements, BTC spot ETFs posted mixed flows: BlackRock contributed inflows, while Grayscale and Fidelity experienced outflows. The total BTC ETF net inflow is around $57.65 billion. ETH ETFs showed a net inflow of about $12.91 billion, with BlackRock and Grayscale among the buyers.
In a notable acquisition, Michael Saylor's company Strategy purchased 10,624 BTC for approximately $962.7 million at an average price of $90,615. The company's total holdings now amount to 660,624 BTC with a cost basis of around $49.35 billion and a year-to-date yield of 24.7%.
Market sentiment remains cautious, with the fear-and-greed index at 25, indicating prevailing fear among investors.
