US Fed News: Why Altcoins Are Suffering and Bitcoin Is Gaining Strength

Fluctuating Crypto Market: Altcoins Dip Amidst Fed Interest Rate Decision

Since January 18, the altcoin market has experienced a significant decline of 7.49%. Within the past 24 hours, most of the top ten altcoins have exhibited negative performances: Ethereum (-1.4%), Solana (-1.6%), BNB (-0.5%), Dogecoin (-0.7%), and Cardano (-1.3%).

Bitcoin's Bullish Outlook

Contrarily, the Bitcoin market has demonstrated a bullish trend during this period. It is noteworthy that the US Federal Reserve is poised to announce its interest rate decision within the next 24 hours.

Altcoin Decline and Fed Interest Rate Expectations

According to crypto market expert Michael van de Poppe, the recent altcoin market crash stems from the likelihood of no interest rate cuts.

Market Behavior Prior to Fed Meeting

At the beginning of January, the altcoin market's total market capitalization reached $1.33 trillion. It peaked at $1.49 trillion on January 6. However, a sharp correction ensued between January 7 and 9, resulting in a 10.73% decline. Despite a subsequent 4.13% single-day growth that surpassed January 6's closing price, the market has experienced a steady decline since January 18.

Fed Meeting and Market Reaction

The US Federal Reserve's interest rate decision is scheduled for tomorrow. The consensus predicts that the Fed will maintain the interest rate within the range of 4.25%-4.5%. In December, the Fed initiated a rate cut of 0.25%, hinting at a potential pause in the rate cut cycle.

In a recent tweet, Michael van de Poppe suggests that the absence of rate cuts is primarily responsible for the altcoin crash.

Potential for Altcoin Recovery

Crypto expert Poppe observes that if the US Fed signals future rate cuts, the altcoin market could experience a rebound.

Alternative Market Trends

Meanwhile, NVIDIA Corp. is attempting to regain lost ground after a recent sharp decline. In the last 24 hours alone, its market has surged by 8.93%.

Bitcoin, in the last 30 days, has achieved a 9.9% growth, indicating promising prospects for its future.

Market Volatility and Fed Decision

The crypto market remains volatile in anticipation of the US Fed's interest rate decision. While Bitcoin and NVIDIA show resilience, altcoins face challenges due to expectations of no rate cuts. If the Fed hints at future cuts, however, altcoins could witness a resurgence.