The cryptocurrency market is currently stable as investors await the Federal Reserve's decision. Bitcoin, Ethereum, and Dogecoin have experienced some price fluctuations, with Bitcoin reaching a high of $108,000 before dropping to $105,000. Total liquidations in the past 24 hours have exceeded $316 million, mainly due to the liquidation of long positions.
Despite the price drop, new short positions are being opened, as indicated by the increase in Bitcoin's Open Interest. The majority of Binance futures traders are currently betting against Bitcoin. The Cryptocurrency Fear & Greed Index suggests that investor sentiment is still strong but cautious.
Ethereum has seen a decline, falling below $4,000 to a low of $3,800. Dogecoin has also experienced a 4% decline, trading at around $0.3916. The overall cryptocurrency market capitalization has slightly increased to $3.78 trillion, reflecting a 2.43% rise in the last 24 hours. While major cryptocurrencies have declined, some altcoins like Pudgy Penguins (PENGU), Bitget Token (BGB), and Cronos (CRO) have seen significant gains.
Investors are eagerly awaiting the Federal Reserve's monetary policy decision, with a 97% probability of a 0.25% interest rate cut being priced in. This decision is expected to have implications for both traditional financial markets and the cryptocurrency sector. Stock indexes like the Dow Jones Industrial Average, S&P 500, and Nasdaq Composite have already reacted negatively, reflecting investor caution.
Analysts are closely monitoring the potential impact of the Fed's decision on the cryptocurrency market. Bitcoin is currently in the early stages of a parabolic phase, which historically lasts around 300 days. This suggests the potential for further price increases in the coming months, driven by institutional investors. Retail interest seems to be shifting towards alternative cryptocurrencies.
Institutional investors are playing a more significant role in Bitcoin's price movements, with a lack of retail hype or euphoria. This trend is supported by a decline in search interest for Bitcoin since its peak following Donald Trump's recent electoral victory. The interplay between institutional investment and retail sentiment will be crucial in shaping future price movements. The upcoming Fed decision is likely to contribute to further volatility in the cryptocurrency market.