Cryptocurrency prices are once again facing a heavy toll as the Federal Open Market Committee (FOMC) meeting approaches. The Crypto Price Crash is predicted due to the upcoming fed meeting on monetary policy. The Bitcoin price has corrected by 2% to start the week, trading at $62,400 at press time. Ethereum, on the other hand, has faced an even steeper decline, correcting 5% and trading at $3,150. While the large-cap cryptocurrencies struggle, new cryptocurrencies are in high demand.
Impact of FOMC Meeting on Crypto Prices
The FOMC meets eight times a year to decide the US central bank’s monetary policy. The primary focus is on the short-term Federal Funds Rate, which has a direct impact on market liquidity. Market expectations regarding the Fed’s monetary policy have seen a significant shift. Initially, the market priced in 7 rate cuts in 2024 due to declining inflation levels in 2023. However, bad inflation data in the first quarter of 2024 has resulted in the market expecting only 2 rate cuts this year. Some analysts even believe that the Fed may not cut rates at all in 2024.
This shift in market expectations has a bearish impact on the cryptocurrency market. Crypto prices are highly dependent on global liquidity, and elevated interest rates negatively affect them. According to the CME FedWatch tool, the US central bank is expected to keep interest rates unchanged in the upcoming FOMC meeting. However, it will be Fed Chair Jerome Powell’s comments that will receive considerable attention from the market. A hawkish tone in his speech could result in an even bigger crash in crypto prices.
Bitcoin and Ethereum Price Levels to Watch
Traders are anticipating a big swing in crypto prices immediately after the FOMC meeting. Popular crypto analyst CryptoNuevo suggests that the Bitcoin price could fall through a long-term range and correct to $60,200 before witnessing any upside. Similarly, trader Crypto Tony predicts that the Ethereum price could visit $2700 in the coming months, especially since the SEC is set to publicly claim that Ethereum is a security.
New Cryptocurrencies on the Horizon
Despite the market turbulence, new low-cap crypto tokens continue to attract significant attention. For instance, the Slothana presale raised over $15 million in less than a month. Experts believe that Slothana could be the next big Solana meme coin, following in the footsteps of Slerf. Rumors suggest that Slothana may have the same development team behind it as Smog, which experienced a surge of close to 27,000%.
Another new cryptocurrency, Bitcoin Minetrix ($BTCMTX), has raised over $13.5 million in its ICO. Bitcoin Minetrix aims to make crypto mining rewards accessible to small-scale retail investors. The project plans to launch a decentralized cloud mining platform that will mine BTC on behalf of its investors and later distribute the profits proportionally to their initial investment. With the crypto mining industry expected to become extremely profitable in the upcoming bull market, mining stocks and tokens like BTCMTX could experience significant value surges.
Analysts such as Michael Wrubel and Predir Capital believe that Bitcoin Minetrix has the potential to offer 100x growth after its initial exchange offering (IEO), scheduled for tomorrow at 10 AM UTC.
FAQs
Question 1: What is the impact of the FOMC meeting on crypto prices?
Answer:
The FOMC meeting impacts crypto prices due to its influence on the US central bank’s monetary policy, particularly the Federal Funds Rate. Market expectations regarding the Fed’s monetary policy can significantly affect global liquidity and interest rates, which in turn can impact cryptocurrency prices.
Question 2: What are the anticipated price levels for Bitcoin and Ethereum after the FOMC meeting?
Answer:
Traders anticipate significant price movements for Bitcoin and Ethereum post-FOMC. Crypto analysts predict that the Bitcoin price could fall to $60,200 and that the Ethereum price could visit $2700, especially with the SEC set to publicly claim that Ethereum is a security.
Question 3: What new cryptocurrencies are gaining attention despite the market turbulence?
Answer:
New low-cap crypto tokens like Slothana and Bitcoin Minetrix are attracting significant attention. Slothana, with similarities to Slerf, is anticipated to be the next big Solana meme coin. Bitcoin Minetrix aims to make crypto mining rewards accessible to small-scale retail investors and is expected to offer significant growth post-IEO.
Question 4: How does the market react to the approaching FOMC meeting and what is the outlook for cryptocurrency prices?
Answer:
As the FOMC meeting approaches, the market faces uncertainty and volatility. Traders are closely monitoring the Fed’s monetary policy decisions and the potential impact on crypto prices. The outlook for Bitcoin and Ethereum price levels is expected to be dynamic, and new cryptocurrencies continue to attract investment as traders diversify their portfolios.
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Disclaimer: This article is for informational purposes only and does not constitute financial advice. The opinions expressed here are solely those of the author and do not reflect the views of any sponsoring organization. Cryptocurrency investments carry risks, and readers should do their own research before making any investment decisions. Chain News Network is not responsible for any losses in the market
