Crypto-related stocks slide as bitcoin retreats below $29,000 (Cryptocurrency: BTC-USD)

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Bitcoin (BTC-USD) fell below $29,000 in Monday morning trading, sending stocks exposed to the cryptocurrency lower, as investors turned their attention to the Federal Reserve meeting on Wednesday, at the during which the Federal Open Market Committee is expected to raise rates for a 10th straight time.

The best-known digital token (BTC-USD) slid 3.3% to $28.45,000 at 10:43 a.m. ET, once again rejecting the key $30,000 technical level, despite renewed concerns over the traditional regional banking sector. Other major tokens were also affected, namely ethereum (ETH-USD), down 3.6% to $1.84k, and solana (SOL-USD), -5.5%.

The bearish price action sent crypto-related stocks lower, including Riot Platforms (NASDAQ:RIOT), -5.9%, Marathon Digital (NASDAQ:MARA), -5.5%, CleanSpark (NASDAQ:CLSK ), -5.5%, Core Scientific (OTCPK: CORZQ), -5.2%, MicroStrategy (NASDAQ: MSTR), -4.1%, and Coinbase Global (NASDAQ: COIN), -1.8%.

The moves come as investors prepare for Wednesday’s FOMC meeting. As core inflation shows signs of stickiness and the labor market remains strong, fed funds futures are priced at a 91.2% chance that monetary policymakers will raise the benchmark rate by 25%. additional basis points, according to the CME tool FedWatch, taking the target range at 5.0% to 5.25%.

Greg McBride, chief financial analyst at Bankrate, said it could be the last rate hike, “or the last for a while, if the Fed chooses to sit back and assess the inflation, the state of the economy and the cumulative impact of all rate increases.

Continued strength in the labor market and slower-than-expected moderation in inflationary pressures underscore the case for another interest rate hike by the Fed on May 3,” he said. “The Fed has sown a credibility problem on inflation and how to dissipate that is to say carry out the work of restoring price stability.

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