On Monday, the crypto markets witnessed a mass decline in the most prominent digital currencies led by Bitcoin and Ethereum, at a time when investors are waiting for the speeches of US Federal Reserve officials to learn more trends on US monetary policy.
In the morning, the coin fell. Bitcoin, the largest cryptocurrencies by market capitalization, up 0.9% to $114.442 thousand, while its total market value fell to about $2.28 trillion. Over the past seven days, Bitcoin has lost about 0.9% of its value, reflecting continued caution in the digital markets after sporadic spikes in recent months.
Ethereum (ETH), the second largest cryptocurrency, posted the largest losses among major currencies, dropping 4.1% to $4,294.4. XRP also saw a 3.5% drop to $2.9024, while Binance Coin (BNB) fell 3.1% to $1034.
Solana Currency (SOL)
Solana (SOL) also fell 3.6% to $231.85, while the most notable losses were Dogecoin (DOGE), which fell 7.3% to $0.24888. These collective declines reflect continued uncertainty in the digital asset market amid overlapping domestic and international influences.
The decline comes as the U.S. dollar continues to make up for losses incurred last week following the U.S. interest rate cut, as the dollar index rose slightly against a basket of currencies to 97.75 points, adding pressure on cryptocurrencies that usually move inversely with the strength of the dollar.
Federal Reserve Board
About a dozen Fed officials, including chairman Jerome Powell, are due to deliver speeches this week. Investors are watching the letters closely to see future trends on interest rates, especially after the bank resumed monetary easing last week by cutting interest rates, in a move that analysts saw as the start of a new phase of flexible monetary policies.
Crypto movements
Market experts believe that the movements of cryptocurrencies at the current stage reflect what is known as«Alternative yield channel»Lower interest rates reduce the opportunity cost of holding non-income-generating assets such as Bitcoin and Ethereum. However, the current decline suggests that investors prefer to wait amid uncertainty about how independent US monetary policy is and how Fed officials view the economic situation.
Digital Currency Rates
Observers consider that the fluctuation in the prices of digital currencies has become more related to developments in global monetary policies, especially in the United States, which remains the largest market influential on the trends of investors in high-risk assets. Some analysts also point out that the recent declines may open the door to new buying opportunities for investors looking for long-term positions, amid continued global interest in cryptocurrencies as a tool for hedging and portfolio diversification.
However, the outlook remains cautious, as investors closely monitor any developments in the cryptocurrency market, both in terms of regulatory policies and changes in the attitude of global central banks towards this asset class, which is still described as high risk and high volatility.
