Cryptos Drop Amidst Wait For Key Central Bank Decisions
Cryptocurrencies declined more than 1 percent in the past 24 hours as markets brace for a review of interest rates by major central banks. Whilst Bank of Japan held rates steady as expected, Reserve Bank of Australia stunned with an unexpected 25-basis points rate hike. The decision of the Federal Reserve would be known on Wednesday and that of European Central Bank on Thursday. Bank of England would pronounce its decision next week.
The CME FedWatch tool, indicates that markets have priced in a 96.5 percent probability for a 25-basis points rate hike by the Fed in the forthcoming review. The same was 93.2 percent a day earlier, 75.8 percent a week earlier and 48.4 percent a month earlier.
In tandem with the firming rate hike expectations, the Dollar Index, a measure of the Dollar’s strength against a basket of 6 currencies has increased to 102.21 versus 102.15 a day earlier, 101.86 a week earlier and 102.09 a month earlier.
Overall crypto market capitalization is currently at $1.16 trillion versus $1.18 trillion a day earlier.
Bitcoin is trading at $28,050.20, down 1.9 percent in the past 24 hours but is holding on to gains of 2.2 percent in the past week. Year-to-date gains have fallen to 69 percent. Bitcoin currently dominates 46.7 percent of the overall crypto market.
Ethereum is trading at $1,829.69, down 1.1 percent on an overnight basis. Ethereum, which dominates 18.9 percent of the overall crypto market has gained 52 percent in 2023.
BNB shed 3.2 percent overnight and 2.0 percent in the past week.
6th ranked XRP (XRP) lost 0.8 percent overnight but has shed 0.9 percent on a weekly basis.
7th ranked Cardano (ADA) lost 1.3 percent in the past 24 hours but is still holding on to gains of 0.8 percent.
8th ranked Dogecoin (DOGE) lost 1 percent in the past 24 hours but is trailing the levels a week ago by as much as 0.8 percent.
9th ranked Polygon (MATIC) lost a little less than 2 percent overnight resulting in a loss of around 1 percent on a weekly basis.
10th ranked Solana (SOL) also lost more than 1 percent overnight, but weekly gains exceed 4 percent.
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