Bitcoin and Ethereum prices fell sharply ahead of a key speech by Fed Chairman Jerome Powell, as investors await further monetary policy guidance. Markets are expecting a dovish tone and the potential for additional rate cuts to reignite buying interest in the crypto market.
The FOMC developments showed a majority of Fed officials supporting further easing this year, with the market pricing in two rate cuts in October and December. However, the rise in the US dollar and US bond yields indicated that investors are still wary of the uncertainty caused by the government shutdown.
Crypto markets saw a massive sell-off of over $550 million in 24 hours, with over 155,000 traders affected. Bitcoin and Ethereum led the decline after several days of sharp surges following the FOMC minutes.
Technical analysis shows a sell signal on Bitcoin, with RSI and ChandeMO in the overbought zone, while TD Sequential also issued a warning. Ethereum, on the other hand, is seen weaker against Bitcoin, with technical support around 0.0325 BTC.
While short-term sentiment remains negative, analysts expect any dovish tone from Powell to have the potential to revive the crypto market, especially if the Fed confirms two rate cuts before the end of the year.
