- Bitcoin and Ethereum prices declined as traders await upcoming Federal Reserve decision on interest rates
- Major stock indices like Dow Jones and Nasdaq fell as investors remain cautious before Fed’s next policy announcement
- Bitcoin faced resistance around $51,000 after recent gains, while Ethereum mirrored Bitcoin’s pullback from $3,000 level
Bitcoin and Ethereum prices have declined as traders await hints from the Federal Reserve at its upcoming FOMC meeting. The Fed’s decisions on interest rates tend to impact crypto and stock markets. With key economic data being released this week, uncertainty prevails in financial markets.
Major Stock Market Indices Decline
The major stock market indices fell yesterday as investors remained cautious before the Fed’s next announcement. The Dow Jones closed 0.17% lower, the S&P 500 dropped 0.60%, and the Nasdaq declined 0.92% on the day. Markets are looking for clues on the Fed’s stance on interest rates.
Bitcoin Price Faces Resistance After Gains
After starting the day around $52,000, Bitcoin’s price dropped below $51,000 during trading. This marks the most significant single day decline since January as bullish momentum slows. Bitcoin remains up for the year so far, partly driven by demand for Bitcoin spot ETFs. However, it has traded sideways since mid-February, signaling a potential cooling off period.
Ethereum Mirrors Bitcoin’s Pullback
Ethereum, the second-largest cryptocurrency, has followed a similar price pattern to Bitcoin lately. After hitting resistance around $3,000, Ethereum’s price retracted 3.2% to $2,880 before recovering somewhat. Despite today’s decline, Ethereum has trended upwards in February, buoyed by bullish factors like higher DeFi activity. The next major resistance level sits around $3,500.
Conclusion
With the Federal Reserve’s upcoming announcements, uncertainty hangs over cryptocurrency markets after Bitcoin and Ethereum prices pulled back from recent gains. Traders are closely monitoring economic indicators and interest rate policy signals from the Fed that could impact prices next.
