Cryptocurrency prices remained volatile on Monday morning as investor attention shifted to the Federal Reserve. Bitcoin crashed to $62,600, and the market capitalization of all cryptocurrencies fell to $2.32 trillion. This means that the cryptocurrency investor has lost over $700 billion over the past few months.
Some cryptocurrencies remained strong on Monday. Monero (XMR) is trading at $125, above this month’s low of $105. Similarly, Tron (TRX) rose to $0.1210, 15% above its April low. This was the highest price since April 12th.
Meanwhile, the Helium (HNT) token rose to $5.56, above its year-to-date low of $3.42. Some of the worst performing tokens included Bonk, Celestia, Worldcoin, and Pyth Network.
The main catalyst for these cryptocurrencies will be action by the Federal Reserve, which begins its meeting on Tuesday. It will then announce its interest rate decision on Wednesday.
Economists will be keeping an eye on the bank's underlying trend and dot plot, as the bank is not expected to cut or raise rates. A dot plot is a document that shows the bank's future actions.
This conference comes at a time when the cryptocurrency industry is short on news as the biggest events have already happened.Securities and Exchange Commission (SEC) has already approved 11 spot Bitcoin ETFs While Bitcoin is halved, Happened.
Therefore, the next price movement of these coins will depend on investor sentiment. The Fed will play a key role in all of this. Any sign that the Fed will soon cut interest rates would be a positive move for Bitcoin and other cryptocurrencies.
Still, with inflation remaining at high levels, there are all signs that the Fed will adopt a hawkish tone. According to data released last week, headline personal consumption expenditures (PCE) rose to 2.6%, while core PCE rose to 2.8%.
At the same time, the U.S. economy remains strong and consumer spending is increasing. Economic growth in the first quarter was 1.6%. Although this was lower than expected, it showed that the economy remains resilient.
As a result, the Fed may keep interest rates on hold for some time between 5.25% and 5.50%. These developments are likely to further increase pressure on risk assets such as stocks and cryptocurrencies.
