BTC Dips Below $62k Ahead of Today’s FOMC Meeting

TL;DR

• Bitcoin has 6% of its value in the last 24 hours and is now trading below $62k per coin.

• The FED might leave rates unchanged, which could negatively affect the crypto market.

BTC Drops Below $62k as Market Correction Persists

Bitcoin, the world’s leading cryptocurrency by market cap, has been underperforming since the start of the week. It is down by 6% over the last 24 hours and is now trading below $62k per coin.

At press time, Bitcoin’s price stands at $61,954, down by 13% over the last seven days. The poor performance comes ahead of today’s FOMC meeting. The Federal Reserve will announce its latest interest rates decision and analysts believe it could negatively affect the crypto market.

While speaking to Cryptowisser, Ruslan Lienkha, chief of markets, YouHodler, said the FED most likely will leave the rate unchanged, as inflation remains stubborn and doesn't decrease as fast as expected. The goal of 2% is still quite far from the current reality. Lienkha added that,

“The decision won't impact crypto directly, but the market will continue to correlate with traditional financial markets and the S&P 500, although sometimes this correlation is not so strong and clear. Specifically, BTC still remains in the long-term upward trend - despite the current correction, it has gained almost 50% since the beginning of 2024. Therefore, the upcoming halving and ETFs will continue to keep the price in the upward trend if the stock market stays calm or grows.”

Investors are now looking ahead to next month’s halving and believe the ongoing correction presents a buying opportunity before Bitcoin rallies higher in the medium term. 

Bitcoin's price decline can be attributed to disappointing flows into the U.S.-listed bitcoin ETFs over the last few days. Investors are currently wary of taking risks before the FOMC meeting.