Major coins traded in the red on Wednesday evening, as the cryptocurrency market capitalization declined by 0.62% in the last 24 hours to $1.10 trillion, recorded at 8:30 p.m. EST.
What Happened: Apex crypto Bitcoin BTC/USD was trading below $25,000 after the Federal Open Market Committee released its report, detailing the signs of slowing economic expansion, which was a positive sign for many investors anticipating more dovish monetary policy. However, the report also highlighted warning signs of rampant inflation and the risk of a recession. Ethereum ETH/USD was trading at less than $1,700. Dogecoin DOGE/USD was trading at $0.085, down 0.03% in the last 24 hours.
Elon Musk once again demonstrated his ability to propel Dogecoin with a single tweet, after joking on Twitter that he “let the Doge out,” referring to the meme coin. DOGE, which was down 3% before that, spiked to $0.087 before reversing course at the time of writing.
U.S. stocks traded mixed amid ongoing inflation and recessionary fears that have weighed on markets for the past few days. The S&P 500 dropped 0.16%, its fourth consecutive daily decline, while the technology-focused Nasdaq Composite Index rose by 0.13%.
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Investment banking giant JPMorgan said in a research report that crypto exchange Coinbase COIN is well positioned to deliver year-on-year improvement in EBITDA.
Google’s GOOGL cloud computing arm is expanding its Web3 capabilities with a new strategic partnership to become a network validator on the Tezos blockchain.
Analyst Notes: “Bitcoin edges lower ahead of FOMC minutes. Bitcoin’s small decline is meaningless as traders brace for what a lot of traders believe could be hawkish Fed minutes. If the $25,500 is reached, momentum traders might try to support a rally toward the psychological $30,000 level. If bearish momentum returns, Bitcoin has strong support at the $22,500 region,” said Edward Moya, senior analyst at OANA, in a note seen by Benzinga.
Crypto analyst Michaël van de Poppe said the correlation between U.S. indices and cryptocurrencies like Bitcoin has not dropped and that it is unlikely that the Chinese market will fuel the coming cycle. “It’s not going to be the case that Bitcoin moons all of a sudden, while Nasdaq tanks to new lows,” he said.
Analyst Justin Bennett said Bitcoin’s outlook did not look great, as we might not see the last anticipated push above $25,200 to short it. “Ultimately, I still think we get that move to $20,000.”
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