Cryptocurrency markets declined broadly as investors braced for the Federal Reserve’s imminent interest rate decision, though potential catalysts for recovery loom in upcoming inflation data.
Altcoins registered losses between 3% and 10% amid heightened market caution, while the collective altcoin market capitalization shrank from $1.57 trillion to $1.52 trillion. Leading Layer-1 tokens including Binance Coin (BNB), Cardano (ADA), and Solana (SOL) declined 3%, 2.6%, and 2.2% respectively.
Bitcoin (BTC) briefly dipped to $116,950 before recovering above the $118,000 threshold, demonstrating relative resilience compared to altcoins. Market leverage decreased substantially as aggregate Open Interest across exchanges fell from $101 billion to $97 billion.
Attention now shifts to the impending Personal Consumption Expenditures (PCE) report, with analysts suggesting softer-than-expected inflation figures could trigger a market rebound. The Federal Open Market Committee’s policy outlook remains pivotal for near-term crypto asset valuation.