Bitcoin Stands Firm as Alts Falter: Market Braces for Fed Decision

Market Summary

The crypto market is experiencing a pre-Fed decision jitters, with Bitcoin and Ethereum both down nearly 2%. This derisking comes as the Federal Reserve is expected to announce its rate decision today, potentially signaling three rate cuts for 2025 instead of the previously projected four. The market is also factoring in revised growth and inflation forecasts.

Key Price Movements:

• Bitcoin and Ethereum: Both down approximately 2%

• Pudgy Penguins' PENGU token: Slumped over 50% since Tuesday's airdrop

• VIRTUAL coin: Up 11% in Asian hours

• HyperLiquid's HYPE token: Trading 4% higher

External Factors:

The market's cautious sentiment is further influenced by expectations of a hawkish rate cut and concerns about sticky inflation. Additionally, declining Chinese government bond yields have raised red flags about potential economic depression in the world's second-largest economy. The upcoming core PCE data release on Friday, the Fed's preferred inflation measure, is also expected to significantly impact future rate cut decisions.

Traders are advised to stay alert as the market navigates these complex macroeconomic factors, with the potential for surprises in either direction based on the Fed's announcements and global economic indicators.