Major coins were trading lower on Sunday night, as the global cryptocurrency market cap fell 0.6% to $849.2 billion.
|coin||24 hours||7 days||Price|
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|Trust wallet token (TWT)||+4.1%||$2.64|
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Why it matters: Bitcoin and Ethereum were in the red at the time of writing, while US stock futures started the week weaker as investors await a key Federal Reserve policy meeting.
On Tuesday, investors will receive November consumer price index numbers and will be on the lookout for signs of a slowdown in inflation. That Federal Committee of the Free Market is scheduled to begin its two-day session the same day.
Data from the CME Fed Watch Tool shows that 73.5% of traders expect interest rates to rise by 50 basis points on Wednesday.
Screenshot from the CME Fed Watch Tool
Alternative.me’s Crypto Fear & Greed Index, a measure of investor sentiment, showed “fear” at the time of writing. The index also showed “fear” last week.
“Bitcoin isn’t doing much ahead of next week’s FOMC decision,” said OANDA’s senior market analyst Edward Moya.
“Bitcoin appears to be stuck in the $17,000 area and that could last until next week’s FOMC decision. Next week is the last trading week of the year that we will see full participation in, which could finally give Bitcoin a more meaningful move,” the analyst said in a note recently viewed by Benzinga. “If Wall Street is confident that the Fed will be done hiking after February’s rate hike and nothing new happens in crypto, you could see Bitcoin racing to $18,000.”
Michael van de Poppe said Bitcoin price action looks “incredibly awful.”
The trader said that altcoins’ market cap “isn’t looking bad at this point.” He said: “The recovery of the range low at $460 billion. If it hits $500 billion, we can move further towards $600 billion and $680 billion. Overall, bullish divergence and clawback are good signals.”
A CryptoQuant The analyst said that despite “giants” like Goldman Sachs declaring that the current levels are “great opportunities in crypto,” there are fewer and fewer UTXOs (Unspent Transaction Outputs) worth more than 1,000 BTC.
“These UTXOs, which are typically owned by large investors, continue to decline despite recent price rallies. Perhaps a good indicator to determine a good market bottom is if we see this segment picking up again or at least stabilizing.” UTXO represents a cryptocurrency that is left over after a transaction.
The analyst for the community-powered platform said: “Right now, their expectations don’t seem positive at all.”
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