- Altcoins may consolidate for weeks before a breakout happens again.
- Fed meeting this week could impact crypto prices and sentiment.
- Global tensions are rising, adding pressure and uncertainty to crypto market.
The cryptocurrency market has been swinging between gains and losses recently, and this week could play a crucial role in setting the direction for what’s next, especially for altcoins and stablecoins.
At the time of writing, the total crypto market cap stands at $3.27 trillion, down 1.72% over the last 24 hours. Most coins are in the red today. Bitcoin is down 1.74% in the last 24 hours, now trading at $105,036. Ethereum has dropped 2.09% to $2,525. XRP and Solana have fallen 3%. BNB also slid and Dogecoin lost 1.75%.
One market analyst said that altcoins recently went through a rally, followed by a cooling-off phase. He compared the current trend to what happened in late 2023, when altcoins paused after an initial surge, then rallied again a couple of months later.
Related: FOMC Meeting Tomorrow as All Eyes are on Powell’s Speech for Crypto Rally Clues
A similar pattern could be playing out now, with altcoins possibly consolidating for another 1-2 weeks before a breakout.
Headlines That Might Decide Altcoins’ Fate
- The U.S. Federal Reserve’s FOMC meeting is one of the most important events this week. While interest rates are expected to remain unchanged, investors will closely watch Fed Chair Jerome Powell’s comments about possible future rate cuts.
- Any hints of a dovish stance could spark a short-term rally in crypto prices. However, if Powell sounds hawkish, it might trigger another pullback in the already unstable altcoin market.
- Rising tensions between Israel and Iran have added to global market uncertainty. Speculation about possible U.S. military involvement, following recent comments from President Donald Trump, has made investors and markets increasingly cautious.
BTC and ETH Hold Important Levels
Bitcoin is holding above $105,000 despite some pullbacks. Analysts say that while the price dipped, it’s still following an overall upward trend.
Related: Market Greed Index at 68: Is It Justified Amidst Sideways Trading and Geopolitical Fears?
If Bitcoin drops below $103,000, however, a deeper correction could follow. Ethereum is currently trading near $2,500, and as long as it stays above $2,400, analysts believe there’s little reason to panic.
Disclaimer: The information presented in this article is for informational and educational purposes only. The article does not constitute financial advice or advice of any kind. Coin Edition is not responsible for any losses incurred as a result of the utilization of content, products, or services mentioned. Readers are advised to exercise caution before taking any action related to the company.
