With only two weeks left until the end of 2023, the crypto market appears to be trading under pressure ahead of the end of the year. Federal Open Market Committee”(FOMC) Final Meeting and Decisions on Interest Rates.
what happened: According to data from CoinGlass, total liquidations in the past 24 hours totaled $427.53 million, the highest amount since mid-September. Bitcoin open interest currently stands at $18.27 billion, compared to the reported $18.51 billion as of December 10, 2023.
CCN reported that in the first 13 minutes of trading on the morning of December 11th, the crypto market wiped out $83 billion of its total value.
In the past 24 hours of trading, the global cryptocurrency market capitalization decreased by 6.4% to $1.53 trillion. BTC/USD Control is currently 52.0%.
Most cryptocurrencies overall have been trading relatively flat or in the red over the past 24 hours. USDC USDC/US dollar and avalanche AVAX/USDthese are the only two of the top 20 cryptocurrencies that are shown in green.
virtual currency investor, Wolf of All Street, Brought to X on December 10th highlight The correction in the cryptocurrency market came after Bitcoin, the top cryptocurrency, recorded eight consecutive weekly gains. This suggests there is pressure on investors to take profits following Bitcoin's recent strong rally, but the cryptocurrency changed its trajectory on Monday.
Why it's important: The crypto market is awaiting the last FOMC meeting of 2023, scheduled for December 12th to December 13th, and the next inflation statistics. Most analysts expect core inflation to improve and assume the Fed will keep interest rates at their current levels of 5.25% to 5.5%.
If this happens, it would be the third time the Fed has kept interest rates on hold. During the previous FOMC meeting, which took place from October 31st to November, the price of Bitcoin would have increased by approximately 1.7% if the rate remained unchanged for one day.
Prior to this data, Bloomberg reported citing the following information: tony sycamoreMarket Analyst IG Australia Pty Ltd., “It is natural to see profit taking. He expects a decline into the $37,500 to $40,000 range to be “well supported” by buy-side buying. ”
james butterfillhead of research at an asset management company coin share“There are quite a few different factors that are likely to align in 2024,” he said. “It was a rise in interest rates that burst the Bitcoin bubble, and what will likely help fuel the next rise is…a rise in interest rates. It will probably be lowered,” he said. As reported by Reuters. Bitcoin price peaked at $69,000 in 2021 amid record low interest rates.
Price action: From its peak to a record high of $45,000, Bitcoin is currently sitting at $40,978, down 6.6% in the past 24 hours. Ethereum ETH/USD and XRP XRP/USD The companies had similar losses, with losses of 7% and 7.6%, respectively.
What's next: What traders will want to watch is whether the Bitcoin halving event and the impending approval of a spot Bitcoin ETF will lead to a price rally heading into 2024, or whether a price correction will occur immediately after the approval of the spot ETF. .
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