What happened?
The crypto market is showing signs of mixed performance, with the total market cap dropping below $4 trillion to $3.953 trillion. Bitcoin remains steady around $111,000, while altcoins are going through a correction phase. The volatility has dropped to multi-month lows, but traders anticipate this calmness won’t last given the upcoming U.S. CPI data and the Federal Reserve’s rate decision. Markets predict an 82% chance of a quarter-point cut.
Who does this affect?
This situation affects crypto traders and investors heavily, as the dynamic market movements can significantly impact their investment values. Notably, Bitcoin holders will be keenly watching the market since Bitcoin is holding steady amidst altcoin corrections. Those banking on changes in monetary policy as a catalyst for crypto market volatility will also be impacted.
Why does this matter?
This matters because fluctuations in the crypto market can significantly impact the broader financial market. The crypto market’s correlation with traditional financial markets means changes can cascade across various investment portfolios and asset classes. A quarter-point cut could potentially spark a significant change in market volatility after weeks of stagnation, affecting numerous players in the market.