Published
2 weeks ago on
April 29, 2024
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Macroeconomic risks remain an obstacle for this crypto bull cycle. Crypto prices are taking a heavy toll once again as the FOMC meeting is set to take place on Wednesday.
The Bitcoin price corrected by 2% to start the week and is trading at $62,400 at press time. Meanwhile, Ethereum faces an even steeper decline, correcting 5% to trade at $3,150.
While the large-cap cryptocurrencies struggle, new cryptocurrencies remain in high demand. A new Solana meme coin Slothana concluded its ICO today on Monday after raising over $15 million. Similarly, a new crypto mining token Bitcoin Minetrix is set for IEO tomorrow after raising $13.5 million.
Crypto Prices Crash As Traders Expect Big Move Post-FOMC
The Federal Open Market Committee or FOMC meets eight times every year to decide the US central bank’s monetary policy. Primarily, it decides the short-term Federal Funds Rate, which has an impact on the market liquidity.
There has already been a strong shift in market expectations regarding the Fed’s monetary policy. Initially, the market was pricing in 7 rate cuts in 2024, owing to declining inflation levels in 2023.
However, bad inflation data in the first quarter of 2024 has resulted in the market expecting only 2 rate cuts this year. Several analysts such as Jesse Cohen of Investing.com believe that the Fed may not cut rates this year at all.
Instant Reaction:
— Jesse Cohen (@JesseCohenInv) April 10, 2024
-Stock Futures Tumble
-U.S. Dollar Jumps
-Bonds Yields Soar
Key Takeaway: The Fed’s inflation battle is far from over.
US CPI inflation is still rising far more quickly than what the Fed would consider consistent with its 2% target range.
Additionally, core… pic.twitter.com/YpOMzrcJze
This is bearish for the cryptocurrency market. Crypto prices are heavily dependent on global liquidity and elevated interest rates negatively impact it.
According to the CME FedWatch tool, the US central bank is expected to keep interest rates unchanged on Wednesday’s FOMC. However, it is Fed Chair Jerome Powell’s comments that will have the rapt attention of the market. The hawkish tone in his speech could result in an even bigger crypto prices crash.
Bitcoin, Ethereum Price Levels To Watch
Traders expect a big swing in crypto prices immediately after the FOMC.
For instance, popular crypto analyst CryptoNuevo revealed that Bitcoin price could fall through a long-term range after the FOMC meeting. He believes that BTC could correct to $60,200 before witnessing any upside.
$BTC Sunday update:
— CrypNuevo 🔨 (@CrypNuevo) April 28, 2024
FOMC and NFP next week - big week ahead. We could see a big move, so I'm going to show you my triggers.
We're still in a range, in a zone where I have no interest in going long or short in the absence of high probability trades.
But this could change soon👇 pic.twitter.com/Ekh9NuYWsX
The Ethereum price could see even more downside. Trader Crypto Tony reveals that ETH could visit $2700 in the coming months, especially since the SEC is set to publicly claim that Ethereum is a security.
$ETH / $USD - Update
— Crypto Tony (@CryptoTony__) April 26, 2024
Worse case i expect us to dip lower to $2700 support zone in time. Will take a few months, but failing to get over $3,600 would enable this pic.twitter.com/YLT8VaU3Nm
New Cryptocurrency Bitcoin Minetrix And Slothana Set For Launch
New low-cap crypto tokens remain in high demand.
For instance, the Slothana presale raised over $15 million in less than a month. Experts believe that Slothana could be a successor to Slerf and could be the next big Solana meme coin.
Various Slothana price predictions tip the token to deliver over 100x to 1000x returns after its launch. After all, rumours have it that Slothana could have the same development team behind it as Smog - another Solana meme coin that surged close to 27000%.
Similarly, a new crypto mining token Bitcoin Minetrix ($BTCMTX) has raised over $13.5 million in its ICO.
Bitcoin Minetrix aims to make crypto mining rewards accessible to small-scale retail investors. It is set to launch a decentralized cloud mining platform which will mine BTC on behalf of its investors and later distribute the profits, in proportion to their initial investment.
Considering that the crypto mining industry is set to become extremely profitable in the upcoming bull market, mining stocks and tokens such as BTCMTX could also surge in value.
Analysts such as Michael Wrubel and Predir Capital believe that Bitcoin Minetrix could possibly offer 100x growth after its IEO, which is set for tomorrow on Tuesday at 10 AM UTC.
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