Major coins were seen trading in the green at the time of writing on Monday evening as the global cryptocurrency market cap rose 0.2% to $1.06 trillion.
Bitcoin, Ethereum, and Dogecoin saw gains as investors awaited the Federal Reserve’s decision on interest rates. The Federal Reserve’s Open Market Committee meeting is expected to arrive at the benchmark interest rates on Wednesday.
While the apex coin has remained largely rangebound, an anonymous analyst said earlier that the FOMC outcome could induce a measure of volatility in the top cryptocurrency by market cap.
The price action of large cryptocurrencies on Monday mirrored those of stocks, which too ended in the green. The S&P inched up 0.07% to 4,453.53, while the tech-heavy Nasdaq was up 0.01% at 13,710.24. Stock futures were seen largely flat at the time of writing.
OANDA Senior Market Analyst Edward Moya said in a note, seen by Zenger News, that while Wall Street is hoping that the end of the Federal Reserve’s inflation fight has arrived, that might not be the case owing to a resilient economy.
“The Fed might try to deliver a hawkish hold, but if markets don’t believe that they will tighten again, we could see a reversal in the US dollar. Eventually, the risk of more tightening will lead to a sharper hit to growth, which could have some traders start to doubt the soft-landing narrative.”
Cryptocurrency trader Michaël van de Poppe said on X, formerly Twitter, that Bitcoin is facing resistance and could see choppy movements for some time before it executes a “substantial move upwards.” He said this was an opportunity for traders to “play the altcoins.”
#BItcoin hits resistance and instance pullback to take OI.
Probably we’ll chop around some more, before we can have a substantial upwards move.
That’s fine, more time to play the altcoins. pic.twitter.com/afZKp6P0gu
— Michaël van de Poppe (@CryptoMichNL) September 18, 2023
Meanwhile, market intelligence platform Santiment noted that Bitcoin’s address activity has soared to year highs as halving approaches the 6-month mark.
📊 #Bitcoin‘s address activity has soared to year highs as the #halving approaches the 6-month mark. The latest community member insight discusses the tight grip that larger hZenger News have on $BTC, and their calm approach while smaller traders get nervous. https://t.co/OS1V8T3b1v pic.twitter.com/uPe4whWHzy
— Santiment (@santimentfeed) September 18, 2023
Elsewhere, a CryptoQuant analyst said on Monday that Ethereum is in a downtrend with negative values on the metric, indicating a bearish market sentiment.
Are the #Ethereum Bull Taking Control of the Market?
“Should this metric continue its upward trajectory and venture into positive territory, it could herald the onset of a new phase characterized by bullish price action.”
— CryptoQuant.com (@cryptoquant_com) September 18, 2023
However, there’s a recent surge in the metric, hinting at a potential shift towards a more bullish sentiment. If this trend continues, Ethereum’s price may see an upsurge, targeting higher resistance levels.
Produced in association with Benzinga