The global crypto market capitalization dropped over 4% within 24 hours to hover lower at $966.86 billion. On the other hand, total crypto trading volume gained approximately 18% to $75.16 billion.
The crypto space extended downward tendencies on Tuesday as investors await the upcoming policy meeting by the Fed Reserve. Market players have started countdowns for a 75bp rate increase, which dragged sentiments in the marketplace lower.
The overall mark value of all cryptocurrency assets dropped under the $1 trillion level again, with BTC struggling to hold the $21,000 value area as Ethereum dips beneath $1,500. Meanwhile, fears of economic slowdowns are still haunting risky assets.
All large-cap crypto coins traded lower early on Tuesday. Polygon dropped more than 9%, while Shiba Inu and Avalanche lost 7% each. Solana and Ethereum surrendered 6% each.
Such tendencies saw the global crypto market capitalization sliding lower to $966.86 billion, translating to a 4% dip within the past 24 hours. Meanwhile, the total crypto trading volume soared approximately 18% to $75.16 billion.
Selling momentum has resumed again as the overall crypto market sees downtrends. Bitcoin has plummeted to 1-week lows, changing hands at $21,147.53 at this publication (Coinmarketcap data).
BTC’s pressure emerges after the bellwether crypto failed to ensure a weekly close beyond the 200-weekly Moving Average, hence failure to flip the resistance into support.
The latest retreat has dented BTC’s sustained bounce back, increasing the chance of Bitcoin price sinking below $20,000 again. Fairlead Strategies co-founder Katie Stockton told Bloomberg TV that the last few weeks noted some market stabilization that had some players confident about bottoming.
Macros to Trigger Market Movements
Market players would focus on global macros and interest rate announcements by Fed. Experts believe the Federal Reserve will introduce a 75bp this week. Moreover, they have enough reasons to surprise with a 100bp hike as June inflation figures exceeded expectations.
Also, the crypto market sees increasing regulatory scrutiny. The US SEC stepped up following the market slump and bankruptcies by some leading crypto lenders. These conditions will likely see the marketplace volatile in the upcoming sessions.