Bitcoin, Ethereum, and Dogecoin experienced modest gains on Monday evening, with Bitcoin increasing by 0.9%, Ethereum by 1%, and Dogecoin by 1.3%. These increases came as investors eagerly awaited the Federal Reserve’s decision on interest rates, which is expected to be announced on Wednesday. Cryptocurrency trader Michaël van de Poppe highlighted that Bitcoin is currently facing resistance and may undergo volatile movements before making a significant upward move. He suggested that this could present an opportunity for traders to focus on alternative cryptocurrencies.
According to market intelligence platform Santiment, Bitcoin’s address activity has reached its highest level in six months as the halving approaches. An anonymous analyst noted that the outcome of the Federal Open Market Committee (FOMC) meeting could introduce volatility to the leading cryptocurrency by market cap.
In contrast to Bitcoin, Ethereum has been experiencing a downtrend, with negative values indicating a bearish market sentiment. However, there has been a recent surge in the metric, suggesting a potential shift towards a more bullish sentiment. If this trend continues, Ethereum’s price may see an upsurge, targeting higher resistance levels.
Edward Moya, Senior Market Analyst at OANDA, commented that Wall Street is hopeful that the Federal Reserve’s battle against inflation is coming to an end. However, Moya expressed skepticism, stating that the resilient economy may prevent this from being the case. He added that if the market does not believe that the Fed will tighten policy further, there could be a reversal in the strength of the US dollar. Moya warned that the risk of further tightening could negatively impact economic growth and cause traders to question the narrative of a soft landing.
On Monday, the price movements of major cryptocurrencies mirrored those of stocks, with the S&P 500 increasing by 0.07% to 4,453.53 and the tech-heavy Nasdaq rising by 0.01% to 13,710.24. At the time of writing, stock futures were relatively flat.
In other news, discussions regarding the approval of a long-awaited Bitcoin Spot ETF will take place at Benzinga’s Future of Digital Assets event in New York City on November 14, 2023.
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