Bitcoin Pauses at $41K as Traders Monitor the Fed's rate decision; AVAX Surpasses Doge as Altcoins
The primary crypto asset rebounded to $42,000 earlier today from the pre-yesterday low of $40,200, then dipped to $40,600 in U.S. afternoon hours. After recovering some losses, BTC was trading at $41,300, reflecting a marginal 0.3% increase over the past 24 hours.âą Bitcoin stabilized near $41,000 following Monday's significant downturn.âą BTC's momentum slowdown led to a surge in several altcoins, with DOT, ATOM, INJ, and TIA emerging as notable gainers.âą Observers widely expect the Fed to pause rate hikes during Wednesday's FOMC meeting.Bitcoin's price steadied at around $41,000 on Tuesday, anticipating this year's final U.S. interest rate decision scheduled for Wednesday. Crypto traders processed yesterday's significant leverage flush and the largest daily drawdown since mid-August.While the momentum of the two leading cryptocurrencies slowed, many altcoins jumped through the day.Native tokens of Polkadot [DOT], Cosmos [ATOM] and Injective [INJ] were among the best-performing crypto majors, gaining 10%-20% over the past 24 hours.Avalanche (AVAX) surpassed the market capitalization of the popular dog-themed meme token Dogecoin (DOGE), registering an almost 5% gain for the day and more than doubling its price in a month.Recently launched blockchain data solution Celestia (TIA) surged 20% to reach a new all-time high. This comes as the platform announced its integration as an option for blockchain builders utilizing Polygon's software tools to establish new layer-2 networks on top of Ethereum.Venture capital-backed blockchain Aptos' token (APT) demonstrated resilience by rallying 16%, despite the release of over $200 million worth of previously locked-up tokens into its outstanding supply earlier today, as reported by Token.Unlocks.The CoinDesk Market Index (CMI), monitoring a weighted basket of nearly 200 digital assets, showed a 1.2% increase over the past 24 hours.The Federal Reserve, the U.S. central bank, is anticipated to maintain Fed fund rates at 5.25%-5.5% as the Federal Open Market Committee (FOMC) concludes its meeting on Wednesday. This decision aligns with the backdrop of Consumer Price Index (CPI) inflation showing a gradual decrease in November.Caleb Franzen, founder of Cubic Analytics, stated on X that "Disinflation is in full force, and the latest round of CPI data for November 2023 is further proof that the trend is intact."Slowing inflation prompts the Fed to pause rate hikes for the third consecutive time on Wednesday. Investors will closely watch Fed Chair Jerome Powell's press conference for indications of potential rate cuts in the coming year.Bitfinex analysts noted in an email that "It is commonly expected that a pause in rate hikes could be interpreted as a bullish signal for the market." They also mentioned that cryptocurrencies have historically seen positive market movements following decisions by the Fed to maintain steady interest rates.