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Crypto Market Starts Plummeting Ahead of FOMC Meeting

As long as inflation remains at historical highs, the Fed is expected to raise interest rates by 75 basis points this week (Nov 2). This meeting may lead to the creation of a new trend pattern for the Crypto Market as a whole.

02 Nov 2022 By: Rohit Tripathi
Crypto Market Starts

Crypto market turned red ahead of FED today’s meeting to increase 

Interest rate again by 75bps or might be more. 

However, the global crypto market cap stood up above the psychological $1 trillion level, the prices of top two coins – Bitcoin (BTC) and Ethereum (ETH) – in red.

At the time of writing, the global cryptocurrency market cap drop 0.6% in the last 24 hours to $1.05 trillion. As per CoinGabbar data, the total crypto market volume over the last 24 hours was $86.21 billion.

The crypto market leader, Bitcoin price is currently trading at $20,405. This follows a 0.6% decrease in the last 12 hours. As a result, its market capitalization stands at $391.68 billion. 

As per CoinGabbar statistics, ETH, the second largest cryptocurrency by market cap, is currently trading at $1,555.15, which dropped 2% in the last 12 hours. Furthermore, its price has increased by 12% in the last week.

Top Cryptocurrencies Price Action

The price of Solana (SOL) has decreased by 2.9% in the last 12 hours. SOL is currently ranked 10th in CoinGabbar's top cryptocurrency ranking in terms of market cap. At the time of writing, the price of SOL was trading at $31.33. 

Also, the price of Dogecoin (DOGE) has plummeted by 10% in the last 12 hours. DOGE is currently ranked 8th in CoinGabbar's top cryptocurrency ranking in terms of market cap. At the time of writing, the price of DOGE was trading at $0.1297.

Stratis (STRAX) continues to fade its traction among cryptocurrency traders and influencers. It decreased by 8% in the last 12 hours and is currently trading at $0.5466.

What Turns Crypto Market Volatile?

The key reason behind the market bear trend is Federal Reserve’s expected interest rates hikes by 75 basis points for the fourth time in a row at today's Federal Open Market Committee FOMC meeting. After all, core inflation readings are rising rather than falling, the economy has recovered from two consecutive quarters of decline, and job creation is increasing, with job vacancies outnumbering unemployed Americans by four million.

Major events around the world

Visa, FIFA's official payment technology partner, has released a series of "one-of-a-kind digital collectibles" showcasing legendary goals from five iconic football players. 

Circle announced on November 2 that it had received a Major Payments Institution License from the MAS, allowing the company to offer crypto services such as digital payment token products and cross-border and domestic transfer services in Singapore.

COINGABBAR VIEWS: Markets are bracing for the fourth 75-basis-point hike in a row, with investors expecting the Fed to decrease its pace before ending the rate-hiking cycle in March. However, midnight FED conference will reveal the next interest rate hike which will decide the new trend pattern for the crypto market.

Read also: BITCOIN PRICE ANALYSIS CMP-$20,470: The market is in a sideways trend; keep an eye on the FOMC meeting