The cryptocurrency market is yet to escape the bear conditions as market capitalization suffers a 1% loss, falling to $1.02 trillion. Bitcoin also faces a loss falling to a current trading price of $20.4k.
The ups and downs of the market are driving cryptocurrency investors to wait it out. Traders have been projecting a wait-and-see attitude, remaining observant of the market changes prior to the upcoming Feds policy meeting, scheduled for Wednesday.
On the other hand, BTCUSD continues its 50-day average and local highs, the same as last month. This has raised hopes and expectations of higher steps after the shakeout. September highs recorded around $22.3K, while July-August highs and the 200-day MA marked $24.3K.
Meanwhile, there are chances of a decline beyond the $19.5K of 50-day MA, even below the global support area of $19k for the last five months. However, optimists foresee an upward graph in the event that the Federal Reserve slows down the rate hikes from December onwards.
Investors are hoping to see a reduction in the rate hikes, with the odds, split between 50bps and 75bps rate hike, by the end of December 2022. Moreover, economic data suggest a robust economy with signs of slowdown appearing in the housing market.
However, Former Treasury Secretary Larry Summers stated the Feds will most likely “stay on the current course.” Summers also shared that anticipations of the central bank pivoting were “badly misguided,” while extending a pandemic track record among economists for “being dismally wrong on inflation.”