The crypto markets are getting ready for the latest interest rate decision from the Federal Reserve.

CoinGecko data shows that Bitcoin was trading at $20,412. This is a drop of about 0.7% in the last 24 hours. At the same time, ether fell 2.8% to $1,549.

Altcoins were also down, and some of them more than the top two. Binance’s BNB lost 1.6%, and Solana’s SOL and Polygon’s MATIC both lost more than 5%. Also, Cardano’s ADA fell by 4.1%. Dogecoin also gave up some of the gains it had made and now trades at a 9% loss.

All eyes are on the decision that the U.S. Federal Reserve will make about interest rates later today. Most people agree that the rate will go up by 75 basis points. Speculators, on the other hand, are keeping a close eye out for any signs of a possible change of direction before the end of the year.

Mauricio Di Bartolomeo of Ledn says that any sign from the Fed that it wants to keep being aggressive could cause markets to drop.

“If the Fed says it will be more “data dependent” going into December, the markets could take that as a sign that there is a higher chance of a smaller hike in December, which could cause people to bid up the markets,” they said.

In its weekly update, QCP Capital said that the fact that market expectations are shifting toward a “bearish” outcome is cause for concern. It says, “We worry that the market will react badly to the Fed’s continued hawkishness.”

The CME’s FedWatch tool shows that the chances of the Federal Open Market Committee raising rates by either 75 or 50 basis points at their meeting on Dec. 14 are about the same.

Aside from that, the relationship between bitcoin and stocks has started to get stronger before today’s interest rate decision. In the past few weeks, there has been less of a link between cryptocurrencies and stocks.

In a week, the U.S. will report on inflation. QCP Capital thinks that between today’s decision and this data point a week from now, there will be more volatility.

In the meantime, Robinhood will report earnings tonight after the market closes. After a bad second quarter, during which the app for retail investors cut costs, investors will be looking for signs of improvement.

https://altcoin.ng/altcoins-prices-fall-as-fed-plans-to-raise-interest-rate/

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