The crypto market recorded a sudden fall during the European market opening time. Top cryptocurrencies BitcoinEthereum prices fell nearly 2% in just a few hours, losing earlier gains.
Altcoins followed suit, bringing a market-wide correction in the crypto market ahead of a key week with the Fed rate hike decision and tech giants’ quarterly results.
Why Crypto Market Witnessed Sudden Fall?
Traders were expecting a correction in Bitcoin price as the rally lacked a pullback. Bitcoin price kept moving upwards and even crossed its 200-DMA, making a 40% rally in January.
Moreover, investors remain cautious ahead of a busy week of corporate earnings and central bank meetings, headlined by expected rate hikes from the U.S. Federal Reserve, the European Central Bank, and the Bank of England.
According to CME FedWatch Tool, there’s a 97.9% probability of a 25 bps rate hike by the Fed during the FOMC meeting. However, a 50 bps rate hike is still on the table and Wall Street economists believe investors have to wait a little longer for the Fed pivot.
Meanwhile, the European Central Bank plans to deliver 50 bps interest rate hikes in February and March. Policymakers push to control inflation while the risk of global recession mounts.
Also ReadJanet Yellen, Elon Musk Warns Severe Recession, Will Crypto Crash Again?
Bitcoin and Altcoins Fell Suddenly
Bitcoin price is currently trading at $23,259, after a 2% fall in a few hours. The 24-hour low and high are $23,166 and $23,919. The BTC price hit a high of $23,861 on Sunday.
Ethereum price also fell 2%, with the current price trading at $1,592. Top altcoins such as XRP, DOGE, MATIC, ADA, etc. plunged over 3% in the last 24 hours.
Despite a decline in the U.S. Dollar Index () to 101.68, crypto prices witnessed a correction. Thus, it indicates investors sold their crypto holdings ahead of the Fed rate hike.
Also ReadLegendary Trader Peter Brandt Predicts Next Move As Bitcoin Price Hits $23.5K
