Crypto Market In Panic Ahead Of FED Meeting, Will It See Relief Or More Pain?

The crypto market could face more volatility during today’s trading session. The U.S. Federal Reserve is set to host its Federal Open Market Committee (FOMC) meeting and possibly announce a hardline approach to combat inflation. Related Reading | Bitcoin Miners’ Exchange Flow Rises To Seven-Month High Amid Bloodbath Inflation metrics have been at their 40-year high versus the U.S. dollar. Thus, investors expect the financial institution to announce a hawkish monetary policy to try and bring down inflation which has been impacting the crypto market and risk-on assets. At the time of writing, Bitcoin is barely hanging above $20,000 and records a 33% loss in the last week. Ethereum records a 40% loss over the same period with smaller cryptocurrencies trading in the red. Trading desk QCP Capital recently posted a market update highlighting the levels of panic in the crypto market. As Bitcoin and other larger cryptocurrencies trended to the downside, major crypto companies failed to meet their financial obligations. The recent evens followed a catastrophic collapse in the Terra ecosystem which already set the stage for a soft market to see further losses. Now, lending and borrowing platform Celsius halted all withdrawals, and Coinbase and BlockFi fired 18% of their personnel. In a letter to his employees, Coinbase CEO Brian Armstrong spoke of an imminent economic recession. These events contributed to the crypto market selloff...