The crypto sector has once again been hit by bearish sentiments and the crypto assets including Bitcoin and Ethereum has taken a big hit. Bitcoin price fell by about 3 % in the last 24 hours and is currently changing hands at $21,865.95 and is expected to stay below the 200 Weekly moving averages.
The number two crypto asset also tanked by almost 5% and when last reports came in was trading at $1,526. As per data received from Santiment the number two crypto asset which has been on the rise after Ethereum Merge date declaration has ceased and is in a down turn and is expected to continue to tank in the coming days. Other major losers in the crypto sector are Solana, Avalanche, and Cosmos
The upcoming FOMC meeting is fueling the bearish sentiments as the crypto sector waits with trepidation for the meeting which is going to happen on 27th July.
Crucial Week Ahead For Crypto Market
The coming week is going to be very crucial for the crypto sector. The crypto sector could be in for more volatility. All eyes will be on the FOMC meeting on the 26th and 27th of July where the Fed’s monetary policymaking body and will make its decision on interest rate hikes.
The previous instance when the interest rate was hiked by 75bps it upset the crypto market and it crashed. As per CME FedWatch Tool there is a 78.7% chance of a 75bps hike and a 21.3% chance of a 100bps hike. However a section of the trading fraternity including a major influencer and trader MFHoz revealed that the Fed had instituted measures to limit the damage which could accompany if there is a 100bps hike.
There are a number of important events up in the coming days which will have a big bearing on the fortunes of the crypto sector. The details of the second quarter US GDP will be declared on 28 July. The first quarter results were disappointing and revealed a negative growth in GDP. If the saga is again repeated in the second quarter, it will be a clear indication that the US economy has gone into a recession. Big tech houses like Google and Microsoft and Apple will declare their financial performance of second quarter. Looking at past history it has been seen that tech stocks have a bearing on the crypto market and any turmoil could end up affecting crypto sector also.