The global cryptocurrency market witnessed a modest uptick of 0.2%, reaching a total valuation of $1.06 trillion on Monday. Major cryptocurrencies, including Bitcoin, Ethereum, and Dogecoin, exhibited positive momentum, mirroring the overall positive sentiment in the stock market.
As of 10:20 p.m. EDT on Monday, Bitcoin, Ethereum, and Dogecoin posted gains of 0.9%, 1%, and 1.3% respectively. These increases came as investors eagerly anticipated the Federal Reserve’s forthcoming decision on interest rates. The Federal Reserve’s Open Market Committee is scheduled to announce its benchmark interest rates on Wednesday.
Renowned cryptocurrency trader Michaël van de Poppe, communicating through X (formerly Twitter), pointed out that Bitcoin currently faces resistance and may undergo volatile fluctuations before initiating a “significant upward movement.” He suggested that this could present an opportunity for traders to explore alternative cryptocurrencies or “altcoins.”
Market intelligence platform Santiment reported a surge in Bitcoin’s address activity, reaching year-high levels, as the 6-month halving mark approached. An anonymous analyst speculated that the outcome of the Federal Open Market Committee (FOMC) meeting could introduce heightened volatility to the leading cryptocurrency by market capitalization.
In contrast to Bitcoin’s performance, a CryptoQuant analyst noted on Monday that Ethereum is currently in a downtrend, characterized by negative metric values, indicating a bearish market sentiment. However, recent upticks in this metric suggest a potential shift toward a more bullish sentiment. If this trend persists, Ethereum’s price could experience an upward surge, targeting higher resistance levels.
Senior Market Analyst Edward Moya from OANDA expressed in a note seen by Benzinga that Wall Street holds optimism regarding the conclusion of the Federal Reserve’s battle against inflation. However, this optimism might be premature due to the resilience of the economy. He further commented, “The Fed may attempt a hawkish stance, but if the market doubts their commitment to further tightening, we could witness a reversal in the US dollar. Eventually, concerns over increased tightening could negatively impact economic growth, leading some traders to question the ‘soft-landing’ narrative.”
On Monday, the price movements of major cryptocurrencies closely mirrored those of the stock market, with the S&P inching up by 0.07% to reach 4,453.53, and the tech-heavy Nasdaq registering a 0.01% gain at 13,710.24. At the time of writing, stock futures appeared to be relatively stable.
In other news, discussions surrounding the approval of a highly anticipated Bitcoin Spot ETF will be a focal point of the Benzinga Future of Digital Assets event scheduled for November 14, 2023, in New York City.
