The cryptocurrency market is generally trading in the red zone today. Leading crypto Bitcoin is struggling to maintain the critical support at $29,000. XRP, which ignited the market after the SEC victory, is deepening its decline. In this environment, investors focus on FOMC minutes.
Cryptocurrency investors are waiting for FOMC minutes!
The Federal Open Market Committee (FOMC) is about to release the minutes of its July meeting, which is expected to shed light on the future of monetary policy. The Fed will release the minutes at 21:00 CEST. At this point, cryptocurrency market players are betting that the Fed will be on hold in September. It also expects it to maintain orbit most likely for the rest of the year. Accordingly, it predicts that it will change course and cut interest rates in 2024. The US central bank has become data-dependent, focusing mainly on the labor market, given its continued tightness.
According to the CME FedWatch Tool, the probability of not raising rates in September is 88.5%. However, the probability of an increase of 25 basis points (bps) in November is 36.2%. Cryptocurrency and financial markets are seeking confirmation as to whether the September surge is the last one. The FOMC document is unlikely to provide a clear answer. But there is always a chance.
Reasons behind crypto market sales
Binance Connect has decided to shut down
cryptocoin.com As you follow, Binance has announced its plan to shut down its trading service Binance Connect just one year after launch. Sales in the market started right after that. The exchange wants to refocus on its core products and long-term goals. The service only supports 50 cryptocurrencies. Despite this, a wider sales wave has been witnessed.
Long liquidations
Coinglass data reveals $129 million worth of long liquidations in one day. Almost 63,000 traders have been liquidated in the last 24 hours, with Binance’s largest single liquidation order of $2.34 million on ETH/USDT. Dogecoin, Litecoin, XRP, Solana, and Shiba Inu are among the most liquidated cryptos in the last 24 hours.
Impact of FOMC minutes
Cryptocurrency traders and whales are considering other reasons including the publication of FOMC Minutes for sale, Elon Musk ending XPro (TweetDeck) as a free offering, and the possibility of the Shibarium main-net going live today. US stock indexes also fell more than 1% amid banking concerns and the weakening Chinese economy.
The FOMC Minutes will help provide traders with clear guidance on the Fed’s plans for further rate hikes. However, a dovish approach is possible to restore momentum in the markets. The US dollar index (DXY) continues to move sideways near the 103.15 level. This shows that the macro does not have a serious effect on the prices of cryptocurrencies.
How will Shibarium affect the SHIB price?
It’s possible that the release of Shibarium was a “buy the rumor, sell the news” thing. SHIB price is likely to continue to decline amid mostly neutral sentiment in the market. It is possible for whales to sell their SHIB and BONE holdings that have recently started buying.
