The global cryptocurrency market experienced a slight increase of 0.2% to $1.06 trillion on Monday, with major coins such as Bitcoin, Ethereum, and Dogecoin all trading in the green. The market's movements mirrored those of stocks, which also ended the day in positive territory.
Bitcoin, Ethereum, and Dogecoin saw gains of 0.9%, 1%, and 1.3% respectively by 10:20 p.m. EDT on Monday, as investors awaited the Federal Reserve's decision on interest rates. The Federal Reserve's Open Market Committee is expected to arrive at the benchmark interest rates on Wednesday.
Cryptocurrency trader Michaël van de Poppe noted on X, formerly Twitter, that Bitcoin is currently facing resistance and could experience choppy movements for a while before executing a "substantial move upwards." He suggested this could be an opportunity for traders to "play the altcoins."
Market intelligence platform Santiment reported that Bitcoin's address activity has soared to year highs as halving approaches the 6-month mark. An anonymous analyst suggested that the outcome of the Federal Open Market Committee (FOMC) meeting could induce some volatility in the top cryptocurrency by market cap.
In contrast to Bitcoin's performance, a CryptoQuant analyst noted on Monday that Ethereum is in a downtrend with negative values on the metric, indicating a bearish market sentiment. However, there has been a recent surge in the metric hinting at a potential shift towards a more bullish sentiment. If this trend continues, Ethereum's price may see an upsurge, targeting higher resistance levels.
OANDA Senior Market Analyst Edward Moya said in a note seen by Benzinga that Wall Street is hopeful that the end of the Federal Reserve's inflation fight has arrived, however, this might not be the case due to a resilient economy. He added, "The Fed might try to deliver a hawkish hold, but if markets don't believe that they will tighten again, we could see a reversal in the US dollar. Eventually, the risk of more tightening will lead to a sharper hit to growth, which could have some traders start to doubt the soft-landing narrative."
The price action of large cryptocurrencies on Monday mirrored those of stocks, with the S&P inching up 0.07% to 4,453.53 and the tech-heavy Nasdaq up 0.01% at 13,710.24. Stock futures were seen largely flat at the time of writing.
In other news, discussions around the approval of a long-awaited Bitcoin Spot ETF will take place at Benzinga's Future of Digital Assets event in NYC on November 14, 2023.
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