Over the past 24 hours, cryptocurrencies have declined by more than 1 percent as markets prepare for a review of interest rates by major central banks. While the Bank of Japan held rates steady as anticipated, the Reserve Bank of Australia was surprised with an unexpected 25-basis-point rate increase. The Federal Reserve’s decision would be known on Wednesday, and the European Central Bank’s on Thursday. The Bank of England will announce its decision the following week.
According to the CME FedWatch tool, markets have priced in a 96.5% chance of a 25-basis point rate increase by the Fed in the upcoming review. A day earlier, it was 93,2 percent, a week earlier it was 75,8 percent, and a month earlier it was 48,4 percent.
The Dollar Index, a measure of the Dollar’s strength against a basket of six currencies, has increased to 102.21 from 102.15 a day earlier, 101.86 a week earlier, and 102.09 a month earlier, in tandem with the strengthening rate hike expectations.
The total market capitalization of cryptocurrencies is presently $1.16 trillion, down from $1.18 trillion a day ago.
Bitcoin is currently trading at $28,050.20, a decrease of 1.9 percent over the past 24 hours but a maintenance of weekly gains of 2.2 percent. The year-to-date increase has decreased to 69%. Bitcoin currently controls 46.7% of the entire cryptocurrency market.
Ethereum is currently trading at $1,829.69, a decrease of 1.1% overnight. In 2023, Ethereum, which controls 18.9% of the entire cryptocurrency market, increased by 52%.
BNB dropped 3.2% overnight and 2.0% over the past week.
The sixth-ranked XRP (XRP) lost 0.8% over the past 24 hours and 0.9% over the past week.
The seventh-ranked Cardano (ADA) has lost 1.3% in the past twenty-four hours but is still up 0.8%.
The eighth-ranked Dogecoin (DOGE) has lost 1 percent over the past 24 hours and is 0.8 percent below its levels one week ago.
Overnight, the ninth-ranked Polygon (MATIC) lost slightly less than 2 percent, resulting in a weekly loss of approximately 1 percent.
The 10th-ranked Solana (SOL) also lost more than 1 percent over the course of a single day, but its weekly gains exceed 4 percent.