Bitcoin drops in broad crypto pullback ahead of US Fed interest rate meeting

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Bitcoin fell along with Ether and all other non-stable cryptocurrencies in the top 10 of Tuesday morning trading in Asia, erasing most of Monday’s gains. Cryptocurrencies followed the decline in US stock markets overnight as traders appeared to take profits ahead of this week’s Federal Reserve rate meeting and a slew of tech earnings. Solana led the losers. Dogecoin cut its losses on reports from Twitter Inc. boss Elon Musk is looking to add payment systems to the social media platform and he is a known fan of the token.

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Fast facts

Bitcoin fell 3.9% to US$22,836 in the 24 hours to 8 a.m. in Hong Kong, taking its losses to 0.6% over the past seven days. Ether fell 4.8% to US$1,566 on Tuesday morning and is down 3.8% for the week, according to data from CoinMarketCap.

Solana lost 8.1% to change hands at US$23.91, down 1.8% on the week after the token posted the biggest gains in the CoinMarketCaps Top 10 list on Monday.

Cardano fell 6.3% to US$0.37, a loss of 1% for the seven days. Polygon fell 7.5% to US$1.09, but was still trading up 9% since last Tuesday.

Top memecoin Dogecoin fell 1.5% to US$0.08, holding its losses at 1% for the week. On Monday, the Financial Times reported that Musk, the world’s second richest person, is considering adding payment systems to Twitter that could include crypto. Musk is a longtime Dogecoin advocate.

US stocks fell on Monday. The Dow Jones Industrial Average fell 0.8% and the S&P 500 index lost 1.3%. The Nasdaq Composite Index fell 2% for its worst day of trading in five weeks.

The Fed meets on January 31 and February 1 and is expected to raise interest rates by 25 basis points, breaking the streak of 50 or 75 basis point hikes since last March in an effort to slow the pace of the economy. inflation. The rate decision is expected on Wednesday.

The Fed’s aggressive rate hikes last year appear to be having the intended effect on inflation. In December, the consumer price index in the United States rose 6.5% year over year, which was well below the 7.1% recorded in November and the strongest monthly decline since April 2020.

Investors are also bracing this week for earnings announcements from tech leaders including Apple Inc., Amazon.com Inc. and Alphabet Inc., the parent company of search engine Google. Non-farm payrolls data is also released on Friday, another key indicator of inflation.

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