Crypto Market Decline Following FOMC Meeting
The total cryptocurrency market cap fell by over $60 billion in the last 24 hours after the Federal Open Market Committee (FOMC) displayed a hawkish tone regarding potential rate cuts in September. Although interest rates were held steady between 5.25% and 5.50%, there was no clarity on future moves.
Brian Quinlivan, Lead Analyst at Santiment, commented on the market reaction, saying, âItâs all about the FOMC and Jerome Powellâs decision to keep interest rates steady. There has definitely been a noticeable letdown from the crowd, who were hoping this would be the first time we would see rate cuts since March 2020.â
As a result, the total crypto market cap dropped below $2.25 trillion, losing support at $2.30 trillion for the first time in two weeks. The market cap is now approaching the support level of $2.20 trillion.
For a potential recovery, the $2.30 trillion level would need to be regained as support, which could push the market cap back towards $2.40 trillion.$BNB
