Crypto Price Today: Bitcoin, Avalanche, Cardano and BNB fall up to 5% amid mixed trade ahead of Wednesday Fed outcome

Bitcoin (BTC) was trading lackluster at $$58,638.79 on Tuesday, down by 0.5% ahead of the Federal Reserve’s FOMC meeting outcome on Wednesday. Major altcoins were trading mixed as cryptocurrencies including Ethereum (ETH), Tether, Solana, XRP and Tron gained by up to 1% around 1:15 pm while Avalanche and Shiba Inu, Cardano and BNB fell by up to 5%.

"In the last 24 hours, Bitcoin has dipped slightly as traders await the Federal Reserve's anticipated interest rate cut. Expectations are high for a potential rate cut with a 59% chance of a 50 basis point reduction, " Shivam Thakral, CEO of BuyUcoin said.

Historically, lower interest rates have been favorable for cryptocurrencies, suggesting a promising outlook for Bitcoin and Ethereum.

Source: CoinMarketCap

Bitcoin has conceded some of its weekly gains in the last 24 hours narrowing it to nearly 3% from 7% till Monday.

"Bitcoin's drop below $60k has stirred speculation. It is perceived that short-term holders booked profits after a series of green candles, pushing the STH-SOPR index above 1, while long-term holders remained steady, eyeing key support at $58,100," Avinash Shekhar, Co-Founder & CEO, Pi42 said. He is of the view that if the support is broken, Bitcoin could test the $55k range.

Thakral remains positive about the prospects of Bitcoin ETFs, arguing that this instrument saw impressive inflows of over $263 million, which is the highest since July, signaling strong institutional interest and confidence in the market. On XRP's intraday gains, he said that there is a renewed optimism amid speculation about the SEC's potential appeal in the Ripple case.

Explaining why Ethereum’s struggle has continued, Shekhar said that its BTC ratio has hit a 3-year low, raising concerns about its short-term outlook. "The market's direction largely depends on trends, such as a potential Fed rate cut or the start of a new bull rally," he added.

In a note, CoinDCX Market said that the crypto market's small dip seems more like a pullback in its broader uptrend. It sees support in BTC at $57,700 with resistance at $61,600.

Altcoins are displaying mixed performance, he said as he echoed Thakral's views that the US Federal Funds rate announcement remains a significant event that could bring increased volatility to the market.

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)