The cryptocurrency markets woke up to a calm Sunday, with Bitcoin continuing to hover around $26,500. Investors eagerly await the Fed week and Wednesday is expected to bring some excitement. So, what is the current situation in the markets and what can investors expect?
Crypto Markets Current Status
Bitcoin price is holding a critical level, but the inability to close above $26,800 is dampening the bullish sentiment. However, the fact that the king cryptocurrency has not plunged to feared lows ahead of the Fed meeting is a positive development. The cumulative volume in the crypto markets dropped below $20 billion again, partly due to the weekend effect. We have repeatedly stated that for a true rally, this figure needs to stabilize above $70 billion.
The cumulative value of cryptocurrencies is $1.06 trillion, with an increase of approximately $100 billion since Friday. The testing of the $1.09 trillion and $1.15 trillion regions in the short term could reassure investors. Bitcoin has seen a nearly 3% increase on a weekly basis, while TON Coin, among the top 10 cryptocurrencies, is showing a remarkable rise. Its weekly gains have reached 40%, and it has climbed to the ninth largest cryptocurrency position, surpassing Solana.
Crypto Markets Latest Data
Ahead of the Fed meeting on Wednesday evening, it is expected that interest rates will be kept unchanged. At the time of writing this article, the CME FedWatch suggests a 98% probability of unchanged interest rates.
The dominant expectation for other meetings is as follows:
- November 1: rates unchanged (72%)
- December 13: rates unchanged (60%)
- January 31: rates unchanged (59%)
- March 20: rates unchanged (53%)
- May 1: rates unchanged (44%)
Expectations for a rate cut start to emerge in January. The current outlook suggests that the Fed will announce the interest rate ceiling at this meeting or by November at the latest.
The US Dollar index has surpassed the critical level of 105 and, if it closes above the 106 region, it could climb back to the 115 region seen in October. This situation may not bode well for cryptocurrencies.
The price of oil has risen by around 7% in August and 9% in September. This increase has contributed to the rise in inflation in the latest August data.
Furthermore, as the upward trend continues, it is likely that the inflation data, which determines the tone of future Fed meetings, will continue to show increases.
