The cryptocurrency market continues its 'redness' ahead of the interest rate decision to be announced at Thursday's central bank meeting tomorrow.
Looking at the movements of the major cryptocurrencies, Bitcoin (BTC) fell below the $19,000 level, down 11% in the past 7 days, while Ethereum (ETH) slumped at $1,350.
The Federal Reserve (Fed) will make a decision in determining the risky asset market tomorrow and the Federal Open Market Committee (FOMC), which is the Fed's monetary policy-making body, will reach its decision on the next interest rate hike.
According to Bloomberg, Wall Street investors expect an increase of 75 or 100 basis points including the CME Fed Watch Tool predicting an increase of 75 basis points has an 82% chance and 18% for 100 basis points.
Explained, the Fed once raised interest rates by 75 basis points in June, and it led to a significant fall in the crypto market.
This caused BTC to suffer its worst financial quarter in over a decade, but the same interest rate hike implemented in July did not have a negative impact with the price seen surging after the initial drop.
Meanwhile, a warning to investors that a more hawkish 100 basis point hike will send the market tumbling again, JP Morgan commented.
